The goal (BDR:) signed a contract valued at least $ 10 billion with Google, from the Alphabet () group, for cloud computing services, according to people familiar with the matter. The agreement is part of the investment of the social networking giant in artificial intelligence.
The owner of Facebook and Instagram will pay at least $ 10 billion over six years to use Google Cloud servers and storage systems, in an attempt to quickly expand their computational capacity and gain advantage in race to offer users to users. The details remain private, the sources said, who asked for anonymity.
This is the first major cloud computing contract between Goal and Google, which occupies third place in the market, behind AWS (Amazon Web Services) and Azure (Microsoft). The news of the agreement was anticipated by The Information. Google confirmed the partnership, but did not comment beyond that. The goal did not manifest itself.
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The CEO of the goal, Mark Zuckerberg, had already promised to invest hundreds of billions of dollars in AI and the necessary infrastructure to support it. Although the company has more than two dozen data centers its own – and is building others, including a 370,000 m² megaproject in Louisiana Rural – many of them will only go into operation in the coming years. Zuckerberg’s goal is to have the largest computational capacity by AI researcher in the world, and do so quickly.
Google Cloud had already collaborated with the goal in the past, but never as a formal infrastructure supplier. In 2023, he announced that he would provide versions of the Open Foundation AI model, Llama, through the AI Vertex, its developer platform. The distribution agreement allowed companies and programmers to access the AI models of the goal and build applications from them. The goal had also performed small experiments with technologies from Google Cloud.
Bloomberg Intelligence Analysts, Mandeep Singh and Robert Biggar, said in a statement on Thursday that the several-year contract “validated” Google Cloud’s strategy to offer lower prices for token compared to other major suppliers. They also pointed out that the goal should focus efforts on improving the llama model’s reasoning capabilities, given the strong competition of other tip models in areas such as search, programming agents, real -time summaries and automatic translation.
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