Google in talks with Tencent, others for cloud services in China

Irving Hamilton
August 8, 2018

We're now hearing that Google is in talks with Tencent, Inspur, and some other Chinese companies to introduce its Cloud service to the Chinese market.

A Google sign is seen during the China Digital Entertainment Expo and Conference (ChinaJoy) in Shanghai, China August 3, 2018. According to the same sources, talks started early this year and Google narrowed partnership candidates to three firms in late 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 United States and China over accusations of spying, among other things.

A Google Cloud spokesman declined to comment. Google gave up on the search market in China years ago, after the government demanded strict search results censorship. Along with other Alphabet Inc. units, it has begun investing more in Chinese companies.

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Partnerships clauses with these major companies are nearly complete. A June report from Synergy ranked Google fourth in the Asian cloud market, behind Amazon, Alibaba and Microsoft. The agreement came with an understanding that the two companies would team up on developing future technologies.

Last week we witnessed rumors that Google is planning to return to the Chinese billionaire market with a completely new integrated AI news app that has the ability to censor content itself for this country. The goal, they say, is to run these services through China-based data centers and servers, similar to the way Apple runs its iCloud operations inside the country.

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