Databricks Partners with Google (GOOGL) to Host Its Gemini AI Models

Cloud company Databricks will soon begin hosting Google’s (GOOGL) Gemini AI models as part of a strategic partnership between the two companies, according to CEO Ali Ghodsi in an interview with The Information. This move follows a similar deal with Anthropic to host Claude models and is part of Databricks’ strategy to help customers build AI apps and agents using their existing data. Interestingly, these agents can handle a wide range of tasks, from answering questions in technical manuals to helping financial firms stay compliant with regulations.

Ghodsi explained that offering customers a wide variety of AI models is key because different tasks require different capabilities. Some customers want high-performance models with advanced reasoning for coding, while others prioritize lower costs. It is worth noting that, currently, the cloud platform that a customer chooses often dictates which AI models they can access. However, Databricks is looking to change that. “We’re a multi-cloud company and we want to make all the models available,” Ghodsi said.

By partnering with model providers like Google, Meta (META), and Mistral, Databricks can simplify the process for customers by eliminating the manual steps needed to purchase and set up models. Interestingly, this is similar to what rival Snowflake (SNOW) is doing. In fact, Snowflake recently partnered with Microsoft (MSFT) in order to offer OpenAI models through Azure and has discussed hosting Google’s Gemini models.

Which Tech Stock Is the Better Buy?

Turning to Wall Street, out of the stocks mentioned above, analysts think that GOOGL stock has the most room to run. In fact, GOOGL’s average price target of $199.11 per share implies 13% upside potential. On the other hand, analysts expect the least from META stock, as its average price target of $699.81 equates to a gain of just 1%.

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