Salesforce makes Gemini AI available on Agentforce in a $2.5 billion deal
The deal is valid for the next seven years
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Key notes
- Google Cloud and Salesforce expanded their partnership, integrating Gemini AI into Agentforce.
- The $2.5B deal enhances Salesforce-Google Cloud integration and data analytics.
- Alphabet’s profit grew 28%, but cloud revenue missed estimates.
Google Cloud and Salesforce have announced a major expansion of their partnership to make AI tools more accessible to businesses.
As part of the deal, Salesforce is integrating Google’s Gemini AI into its Agentforce platform, and it lets you build AI-powered assistants using Google’s technology as a customer.
The agreement, valued at $2.5 billion over seven years, also enables Salesforce users to deploy its core platforms—including Agentforce, Data Cloud, and Hyperforce—on Google Cloud. This means businesses can access Salesforce services directly through the Google Cloud Marketplace.
Another key focus of the partnership is improving data integration. Salesforce customers will now be able to unify their analytics across Google’s BigQuery, Looker, and Salesforce’s Tableau, which lets them get more insights from their data without switching between platforms.
The companies are also working on better connections between Slack and Google Workspace, such as Google Chat, to improve cross-platform communication.
When talking about the deal’s benefits, Google Cloud CEO Thomas Kurian said, “Salesforce’s selection of Google Cloud as a major infrastructure provider means enterprise customers can now deploy some of their most critical applications on our highly secure, AI-optimized infrastructure — with minimal friction.”
This deal builds on previous collaborations, including a 2023 partnership where Salesforce and Google worked together on AI-powered assistants for Slack and Tableau.
Cloud and AI are the strongest selling points that Google has had in recent quarters. But, earlier this year, Alphabet reported revenue of $96.5 billion for the last quarter, missing Wall Street’s $96.6 billion estimate, with cloud sales falling short of $11.96 billion instead of the expected $12.2 billion.
While overall profit grew 28% to $26.5 billion, Alphabet’s stock dropped 7% in after-hours trading. The company plans to spend $75 billion in capital expenditures this year, up from $52.5 billion, to expand AI capabilities amid growing competition.
Despite cloud struggles, Google Search generated $54 billion, surpassing expectations, and YouTube ad revenue rose 14% to $10.5 billion.
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