Google scores six-year Meta cloud deal worth over $10B
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Re: Google scores six-year Meta cloud deal worth over $10B
#2Would be very interested to know how this is structured, as presumably it's a hedge for Meta's uncertainty about how much compute they'll need.
Re: Google scores six-year Meta cloud deal worth over $10B
#3Meta is planning to spend $65B+ on capex this year. That's a lot of data centers. Why do they need a tiny bit more from Google?
Re: Google scores six-year Meta cloud deal worth over $10B
#4Meta is planning to spend $65B+ on capex this year. That's a lot of data centers. Why do they need a tiny bit more from Google?
Assuming this has a lot to do with Google's TPUs. Google is well positioned to be the AWS for AIs given the increased efficiency of TPUs, which only they have.
Re: Google scores six-year Meta cloud deal worth over $10B
#5Meta is planning to spend $65B+ on capex this year. That's a lot of data centers. Why do they need a tiny bit more from Google?
> That's a lot of data centers. Why do they need a tiny bit more from Google?
Data centers don’t pop up overnight, until then they are going to use a vendor :-)
Re: Google scores six-year Meta cloud deal worth over $10B
#6Google needs deal this due to flights away from its cloud.
It can't compete with Azure for simple/coarse-grained services and AWS for complex/fine-grained services.
Atm, Google cloud is only good for cheap high-ram one-run-centric compute (AWS is cheaper for generic compute and reserved compute), simple container execution (Cloud Run), and ~100 TB bulk storage.
Re: Google scores six-year Meta cloud deal worth over $10B
#7Meta is planning to spend $65B+ on capex this year. That's a lot of data centers. Why do they need a tiny bit more from Google?
> That's a lot of data centers. Why do they need a tiny bit more from Google? Data centers don’t pop up overnight, until then they are going to use a vendor :-)
this is the correct answer.
Re: Google scores six-year Meta cloud deal worth over $10B
#8Google needs deal this due to flights away from its cloud. It can't compete with Azure for simple/coarse-grained services and AWS for complex/fine-grained services. Atm, Google cloud is only good for cheap high-ram one-run-centric compute (AWS is cheaper for generic compute and reserved compute), simple container execution (Cloud Run), and ~100 TB bulk storage.
Your phrasing seems off. Why does Meta care what Google needs? It would seem that it's exactly backwards. Meta needs this because training resources are scarce. And Google is in the enviable position of having TPUs.
Re: Google scores six-year Meta cloud deal worth over $10B
#9Google needs deal this due to flights away from its cloud. It can't compete with Azure for simple/coarse-grained services and AWS for complex/fine-grained services. Atm, Google cloud is only good for cheap high-ram one-run-centric compute (AWS is cheaper for generic compute and reserved compute), simple container execution (Cloud Run), and ~100 TB bulk storage.
Your phrasing seems off. Why does Meta care what Google needs? It would seem that it's exactly backwards. Meta needs this because training resources are scarce. And Google is in the enviable position of having TPUs.
I read GP as implying GCP would be inclined to negotiate aggressively to be sure to secure this deal, due to the factors they list.
Both companies need to get something out of the deal. Listing the benefits to only one side is probably missing part of the story.
Re: Google scores six-year Meta cloud deal worth over $10B
#10Meta is planning to spend $65B+ on capex this year. That's a lot of data centers. Why do they need a tiny bit more from Google?
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