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Meta Makes Huge Cloud Computing Deal with Google

(FILES) A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo by Fabrice COFFRINI / AFP)
(FILES) A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo by Fabrice COFFRINI / AFP)
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Meta Makes Huge Cloud Computing Deal with Google

(FILES) A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo by Fabrice COFFRINI / AFP)
(FILES) A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo by Fabrice COFFRINI / AFP)

Meta has made a cloud computing deal with Google worth more than $10 billion over the course of six years, a source close to the transaction told AFP Thursday.

The source confirmed a report at tech news outlet The Information about the arrangement, which will include Meta using Google datacenter servers, storage, networking and other services.

Meta declined to comment.

Meta chief executive Mark Zuckerberg has embarked on a major artificial intelligence spending spree, poaching top researchers with expensive pay packages from rivals like OpenAI and Apple as he builds a team to pursue what he calls AI superintelligence.

"I'm excited to build personal superintelligence for everyone in the world," Zuckerberg said in an earnings call late last month.

Meta is locked in a bitter rivalry with other tech behemoths as they invest heavily in AI, said AFP.

The deal with Meta is among the biggest in the 17-year history of Google's cloud unit, according to the source.

Google parent Alphabet's cloud computing business was on pace to bring in $50 billion over the course of the year, the company said in a recent earnings report.

Meta also reported robust second-quarter financial results, and significantly increased its capital expenditures to $17 billion in the quarter, primarily for AI infrastructure investments.

Meta projected total 2025 capital spending between $66 billion and $72 billion.

A strong quarter "won't shield Meta from questions concerning the company's future as it breathlessly tries to keep up in the AI race," Emarketer analyst Minda Smiley said of the quarterly earnings.

In a post outlining Meta's AI strategy, Zuckerberg has signaled that the remainder of the decade would be a transformative period for artificial intelligence development and that the company's priority was to bring AI to its users.

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Technology

China's DeepSeek launches V4.1-Flash model

A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo
A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo
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China's DeepSeek launches V4.1-Flash model

A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo
A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. REUTERS/Florence Lo

Chinese artificial intelligence startup DeepSeek on Thursday launched DeepSeek-V4.1-Flash, which the company said is the smallest model in its new architecture ⁠family, according to ⁠a statement.

The release came as the company ⁠is starting to prepare for an initial public offering on Shanghai's tech-focused STAR Market, Reuters has reported.

DeepSeek said the new model ⁠is designed ⁠for greater capability, faster inference, higher throughput and scaling to larger models.

Technology

China Says US Accusations of AI Theft Are ‘Groundless’

A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. (Reuters)
A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. (Reuters)
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China Says US Accusations of AI Theft Are ‘Groundless’

A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. (Reuters)
A DeepSeek AI sign is seen at a building where the Chinese start-up's office is located in Beijing, China, February 19, 2025. (Reuters)

China said on Wednesday that US accusations of Chinese labs stealing the capabilities of American models were "groundless", as the two countries race for tech supremacy. 

The US cyber defense agency released an advisory on Tuesday accusing top Chinese AI labs including DeepSeek and Moonshot AI of systematically stealing the capabilities "through industrial-scale knowledge distillation campaigns". 

It came ahead of an expected meeting this month between President Donald Trump and his Chinese counterpart Xi Jinping at the White House, where AI could be an important discussion topic. 

China hit back on Wednesday, calling the accusations "groundless". 

"The US approach is a typical case of using the crackdown on distillation as a pretext to achieve industrial monopoly," the Ministry of Commerce said in a statement. 

The US accusations are a "case of double standards", it added. 

Distillation is where an AI model is trained to mimic the output of a larger, more capable one. 

The method is widely used across the industry, but Washington says Chinese firms have deployed it at scale to illicitly copy American systems. 

The US advisory also detailed how DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI allegedly used millions of exchanges and requests to steal the capabilities of US models from the likes of OpenAI, Anthropic, Google and xAI. 

Chinese companies that adopt this strategy "see significantly shorter AI development timelines and reduced financial expenditures in training a frontier model", the advisory said. 

These actions, taken "likely with Chinese government awareness", have occurred since at least late 2024, it said. 

AFP contacted the Chinese companies apart from StepFun, which was not immediately reachable. Moonshot AI declined to comment. 

Trump is under pressure to respond to the increasing success of Chinese AI models that many companies prefer to the more powerful, but pricier, US versions from Anthropic or OpenAI. 

In July, dozens of startups wrote a letter to the Trump administration urging it to think twice against any outright ban or strict curbs on foreign-made AI models, saying this should only be considered for government use of the technology. 

That month, Beijing also turned the tables by accusing US AI of using Chinese examples to train their models. 

Asked about the accusations at a regular briefing on Wednesday, Chinese foreign ministry spokeswoman Mao Ning said the United States should "refrain from making unfounded accusations against and smearing China". 

"The development of artificial intelligence in China is the result of achieving high-level self-reliance and strength in science and technology," she said. 

"Both China and the United States are major countries in the field of AI. We should strengthen cooperation." 

Technology

OpenAI Says Working with Samsung on Next-Generation Chips, Deepening Cooperation

The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. (Reuters)
The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. (Reuters)
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OpenAI Says Working with Samsung on Next-Generation Chips, Deepening Cooperation

The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. (Reuters)
The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. (Reuters)

OpenAI is deepening cooperation with Samsung Electronics as the ChatGPT maker develops its own chips, expanding ties with the South Korean technology giant across semiconductors and enterprise AI services.

"One of the areas where we have made the most progress and gained the most recognition with Samsung Electronics is our joint production and research on the next-generation chips we are developing," Harrison Kim, General Manager of OpenAI Korea, said at a press ‌conference in Seoul ‌on Wednesday, without elaborating.

Kim also said Samsung Electronics was "one ‌of ⁠the largest-scale deployments of ⁠ChatGPT globally," saying the company's employees in Korea and overseas use ChatGPT for work across research and development, marketing and sales.

Samsung Electronics said in a statement that it could not confirm information related to customers.

In June, OpenAI unveiled its first custom artificial intelligence chip designed with Broadcom. OpenAI's engineers designed the chip, called Jalapeno, together with Broadcom for a task known as AI inference, the ⁠process of crunching data to answer queries in applications ‌such as ChatGPT.

OpenAI at that time said that ‌Taiwan's TSMC would manufacture the chips.

Last year, Samsung Electronics and SK Hynix signed letters ‌of intent to supply memory chips for OpenAI's Stargate data center project.

Kim ‌said demand for memory chips would continue to grow as more advanced chips were needed to enable faster and more complex computing, making cooperation with South Korean semiconductor suppliers a priority for OpenAI's local office.

The cooperation comes as Samsung broadens its ‌use of generative AI. The company said in June that workers in its Device eXperience division, which oversees mobile ⁠phones, televisions and home ⁠appliances, would be allowed to use ChatGPT, Google's Gemini and Anthropic's Claude internally.

OpenAI said the number of ChatGPT Enterprise users at South Korean companies and institutions had surged about 28-fold as of the end of August from a year earlier, as businesses broadened their use of artificial intelligence from individual tasks to company-wide operations.

Companies were increasingly using AI across functions including legal, sales, finance, marketing and operations, OpenAI said. The company declined to provide absolute user numbers.

South Korea had the largest number of paying ChatGPT subscribers outside the United States as of late last year, according to OpenAI.

OpenAI expects adoption to accelerate following the September 4 launch of GPT-6 Astra, its latest model, which it said offered improved performance in computer use, professional work, science, coding and cybersecurity.