Meta Platforms Inc. has inked a six-year, $10 billion cloud-computing deal with Alphabet Inc.’s Google, emboldening both companies’ push into artificial intelligence (AI) infrastructure.

The agreement, per multiple media outlets, calls for Meta to use Google Cloud’s servers, storage, networking, and other services, according to a report in The Information.

Google and Meta were not immediately available for comment.

Both companies are jockeying for position in the race to build out massive data centers and to handle the compute necessary to develop cutting-edge AI models and services.

In July, Meta CEO Mark Zuckerberg said the company would spend hundreds of billions of dollars to build several massive AI data centers, and it is seeking outside partners to help fund the effort. Meta is projecting up to $72 billion in AI and infrastructure investments this fiscal year.

The company is simultaneously laying groundwork for artificial general intelligence (AGI) while embedding AI into everyday products that millions use daily.

On Thursday, the company confirmed a Wall Street Journal report that it has paused hiring for its new AI division amid restructuring of its AI unit, now called Meta Superintelligence Labs. But it doesn’t signal Meta intends a major cutback in AI spending – it is simply in digestion mode after a massive spending spree that included several acquisition-sized offers and hires in the nine-figure range, according to Daniel Newman, CEO of The Futurum Group.

Before pouring more investment into its AI teams, Meta needs time to place and access its new talent before forging to new breakthroughs like superintelligence, Newman said.

Google, meanwhile, is pursuing big cloud contracts as it battles it out with rivals Amazon Web Services and Microsoft Azure. Earlier this year, Google landed a contract with OpenAI, which previously relied on Azure.

Google Cloud produced $2.83 billion in operating income on $13.6 billion in revenue during the second quarter.

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