Meta Signs $10B+ Cloud Deal with Google — What This Means for AI and Investors
- Roland
- Aug 21, 2025
- 2 min read
Meta has just inked a $10+ billion cloud deal with Google, a partnership that will reshape the competitive landscape of AI infrastructure. The Information first reported the deal, and Yahoo Finance has also covered it.
This isn’t just another tech partnership. It’s a seismic shift in the way large language models (LLMs) are being hosted, trained, and deployed.
Why This Deal Matters
Meta’s Llama models are now running on Google Cloud infrastructure, joining the ranks of Claude (Anthropic), Gemini (Google), and even parts of OpenAI’s GPT, which despite its deep ties to Microsoft Azure, also leverages Google’s cloud.
With this, Google Cloud becomes the de facto backbone for the most advanced AI models in the world.
Unlike Microsoft, which locked OpenAI into a restrictive deal, Google has created a more flexible ecosystem that appeals to multiple major AI players.
The Hardware Edge: TPU vs GPU
Everyone in AI knows that Google’s Tensor Processing Units (TPUs) are the most cost-efficient hardware for large-scale AI workloads. While Nvidia GPUs dominate headlines, TPUs quietly power many of the biggest breakthroughs. The Meta-Google partnership validates this — cost efficiency at scale matters.
Investment Perspective
From a stock standpoint, Google (Alphabet) looks undervalued compared to its peers:
P/E ratio is still around 20 — far below Microsoft’s.
If it were valued like Microsoft, the stock would be sitting near $370 per share.
Add to that: Google is backing Anthropic (alongside Amazon), running its own Gemini models, powering Llama, and hosting workloads for GPT. This is a cloud + AI powerhouse in plain sight.
My Takeaway
Meta choosing Google Cloud is a strong signal that the best minds in AI trust Google’s infrastructure. Between TPUs, multi-model hosting, and diversified investments in startups like Anthropic, Google is quietly becoming the AI industry’s most important enabler.
For investors, this is the kind of long-term growth story hiding behind a relatively modest valuation. When you look at the fundamentals, Google may be the best value stock in big tech right now.
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