Google has struck a six-year cloud computing agreement with Meta Platforms valued at more than $10bn, reported Reuters, citing a source familiar with the matter.

Under the deal, Meta will rely on Google Cloud’s servers, storage, networking, and other services, the source said, requesting anonymity as the talks are confidential. Google and Meta have not yet commented. The Information first reported the agreement.

The move comes as Meta ramps up spending on artificial intelligence. In July, chief executive Mark Zuckerberg said the company would invest “hundreds of billions of dollars” to build vast AI data centres. Last month, Meta raised the lower end of its annual capital expenditure forecast by $2bn, bringing the range to $66bn–$72bn.

The company has also been seeking partners to support its infrastructure push, including plans to offload $2bn worth of data centre assets, according to a filing earlier this month.

For Google, the Meta deal is the second major cloud agreement in recent months. In June, Reuters reported that OpenAI was preparing to add Google Cloud services to meet its rising computing demands, a notable collaboration between rivals in the AI race.

Alphabet’s cloud unit reported a 32% year-on-year revenue increase in the second quarter, surpassing expectations. The agreement with Meta is expected to strengthen further its position in the fast-expanding market for AI-driven cloud services.