Greetings,

For years, we've watched as the biggest names in tech—Google, Meta, and Apple—have battled for dominance across every imaginable front, from digital advertising to mobile operating systems. But this week, two of our articles highlight a fascinating counter-narrative: these same rivals are increasingly becoming crucial business partners. It's a dynamic that shows just how complex the tech industry has become, where even your fiercest competitor can be your most valuable customer.

The first article, by Kevin McLaughlin and Kalley Huang, uncovers a massive cloud deal between Google and Meta. The second, from Amir Efrati, Stephanie Palazzolo and Natasha Mascarenhas, digs into how OpenAI is using Google search data to power ChatGPT. Taken together, these stories reveal a new era of strategic interdependence.

Why it caught my eye:

• Rivals as Customers: Meta, one of Google's biggest rivals in digital advertising, has signed a cloud computing deal with Google worth more than $10 billion over six years. The deal is one of the largest in Google Cloud's 17-year history.
• Borrowing from the Competition: OpenAI, while trying to unseat Google, is using Google search results to help power ChatGPT responses. This data, scraped from the web, helps answer queries on current events.
• Leverage and Power Dynamics: The new cloud deal makes Meta one of the world's biggest cloud customers, potentially giving it more leverage to negotiate better prices with other providers. Similarly, Google is providing OpenAI with crucial infrastructure, demonstrating its willingness to benefit from the rise of competitors, similar to its past partnerships with Apple and Meta.

These articles remind us that the most significant stories are often found where we least expect them—in the complicated, often contradictory, relationships that define the tech world.

Best,

Jessica Lessin
Founder & Editor-in-Chief

OpenAI Is Challenging Google—While Using Its Search Data

Google has struck a major cloud computing deal with Meta Platforms, according to two people familiar with the matter. As part of the agreement, the social media giant will use Google Cloud's servers, storage, networking and other services, one of the people said.

The deal—worth more than $10 billion over six years, the person said—is one of the largest known agreements in Google Cloud's 17-year history. It comes after Meta CEO Mark Zuckerberg in July said his company would spend "hundreds of billions of dollars" on expanding its computing capacity to enable its ambitions in artificial intelligence.

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