TLDR
- Google Cloud signed a new five-year deal with BNP Paribas to expand access to Gemini AI models.
- Alphabet stock rose 1% and BNP Paribas stock rose 2% following the announcement.
- BNP wants to generate €750 million in AI value by the end of 2026.
- BNP will keep sensitive customer data, including medical records, off public cloud servers.
- Wall Street has a Strong Buy rating on GOOGL, with a price target implying 26% upside.
Alphabet stock (GOOGL) climbed 1% on Thursday after Google Cloud announced a new five-year partnership with French bank BNP Paribas. BNP Paribas stock (BNPQY) also moved higher, gaining 2% on the news.
The deal expands BNP’s access to Google Cloud infrastructure along with Gemini Enterprise and Gemini AI models. It builds on an existing relationship between the two companies.
BNP is using the partnership to chase a big target. The bank wants to generate €750 million in AI-related value by the end of 2026 through higher revenue and better efficiency.
Risk management upgrades are also part of that goal. BNP plans to roll out Gemini models first inside its corporate and institutional banking unit.
One of the earliest applications will be an internal generative AI assistant for that division. From there, BNP wants to build specialized AI agents designed for specific employee tasks.
Charles Holive, BNP’s chief AI officer for corporate and institutional banking, said the technology could speed up how employees prepare corporate credit memos. Research tasks could also move faster.
Google to Build Custom AI Tools for BNP
The partnership goes beyond simple access to Gemini. Google Cloud consultants will work directly with BNP employees to build AI tools tailored to specific jobs.
That hands-on support could help BNP move models out of testing and into daily workflows faster. Sales teams are next in line for similar tools, followed by trading and other financial operations.
BNP is not putting all its AI eggs in one basket, though. The bank extended its separate partnership with French AI developer Mistral earlier this year for three more years.
BNP Chief Information Officer Marc Camus said the Google and Mistral relationships are meant to work side by side rather than compete. The two providers won’t necessarily handle the same projects.
BNP Keeps Sensitive Data Off Public Cloud
Despite the expanded Google agreement, BNP is not moving everything to the cloud. Camus told reporters the deal does not mean the bank will drop its on-premise infrastructure.
Medical information tied to BNP’s insurance business is one example of data the bank keeps away from public cloud systems. Google confirmed BNP will retain ownership of its data, and none of it will be used to train or refine Google’s models.
BNP said any AI agents built through the partnership will be authenticated, limited to the resources they need, and monitored. Less sensitive tasks, like invoice processing and data management, are seen as better fits for Google’s public cloud tools.
Neither company disclosed the financial value of the agreement. The expansion adds another large financial-services client to Google Cloud’s roster as European banks increase AI spending.
On Wall Street, analysts have a Strong Buy consensus on GOOGL stock, based on 24 Buy ratings and four Hold ratings issued over the past three months. The average price target of $428.88 per share implies 26% upside from current levels.
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