Published: Wed, August 08, 2018
Business | By Tara Barton

Google in talks to bring cloud service to China

Google in talks to bring cloud service to China

Alphabet Inc (NASDAQ:GOOGL) is all-in on its Google Cloud Platform, which competes with Amazon's AWS and Microsoft's Azure, and worldwide growth will no doubt be a big part of the growth story.

Alphabet Inc's Google is in talks with Tencent Holdings Ltd, Inspur Group and other Chinese companies to offer its cloud services in the mainland, Bloomberg reported here on Friday, citing people familiar with the discussions. Google could host services, such as Gmail, Drive and Docs, on Tencent's data centers, and the Chinese company may suggest existing cloud customers try Google offerings.

According to the sources, these discussions began early this year, and Google narrowed its potential partners down to three firms in March. However, despite talks progressing between Google and the firms, it is unclear if the plans will go ahead in the wake of heightened trade tensions between the U.S. and China over accusations of spying, among other things.

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As just about every US tech firm has found, doing business in China is easier said than done. To be specific, there have been reports that Google is working on censored versions of its Search and News apps. The company can likely expect similar requests this time around as well.

Shares of Tencent rose as much as 2.3% in Hong Kong. Year-to-date, GOOGL has gained 17.54%, versus a 7.18% rise in the benchmark S&P 500 index during the same period. Tensorflow, a coding library for AI applications created by Google, is growing in popularity with researchers and software developers in China.

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