Alphabet Inc. (GOOGL) is deepening its push into AI with a new deal that ties its Google Cloud unit to private equity firm Thoma Bravo. The goal is simple. Help dozens of mid-sized software firms move faster with AI and stay competitive as the tech shifts.
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Under the plan, Thoma Bravo portfolio firms will gain access to Google Cloud tools, including the Gemini AI platform. In addition, Google engineers will work directly with these firms to solve technical issues and speed up product updates. The companies will also be able to sell their products through Google Cloud Marketplace, which opens new paths to customers.
Orlando Bravo, founder and managing partner at Thoma Bravo, said the move reflects how fast the market is changing. “Everything’s changing pretty quickly, so you have to be super humble about it,” he said. He also noted that the firm will now guide AI strategy across its portfolio, rather than let each company act on its own.
Meanwhile, GOOGL shares rose 3.61% on Tuesday, closing at $332.91.
A Coordinated AI Push Across a $300 billion Portfolio
The scale of this effort stands out. Thoma Bravo’s portfolio companies are worth more than $300 billion combined. Instead of taking a wait-and-see approach, the firm plans to invest billions of dollars over several years to upgrade these businesses with AI.
This shift comes as investors worry that many software firms could fall behind. New AI tools from firms like Anthropic and OpenAI can automate tasks in areas such as legal work, research, and data services. As a result, some investors fear that older software products may lose value if they do not adapt.
Karthik Narain, chief product and business officer at Google Cloud, pointed to this concern. “Can they add the dynamic reasoning into their existing workflows, and can they continuously evolve as the business changes faster?” he said. “That’s what we are trying to address through this partnership.”
Security and Growth Move Together
At the same time, the deal also focuses on security. As AI tools spread, they can create new risks in software systems. Thoma Bravo owns several cyber firms, including Proofpoint, SailPoint, Imprivata, and Darktrace. These companies generate about $8 billion in annual revenue combined.
Now, some of these firms will work with Google Cloud to find and fix weak points in code and systems. This effort goes beyond basic fixes. As Bravo explained, “It’s not only about fixing the code, but also protecting against human and agent threats.”
Overall, the partnership shows how both sides are thinking ahead. Google Cloud gains a large group of clients ready to adopt its AI tools. Meanwhile, Thoma Bravo aims to keep its software assets relevant in a fast-changing market.
Is Google Stock a Buy, Sell, or Hold?
Turning to the Street, Alphabet boasts a Strong Buy consensus view. Of 30 ratings issued, 25 analysts rate it a Buy, while five analysts rate it a Hold. The average GOOGL stock price target is $385.46, implying a 15.79% upside from the current price.
