Shares of tech giant Google (GOOGL) are rallying in today’s trading after Thinking Machines Lab signed a multi-billion-dollar deal with Google Cloud to expand its AI infrastructure, according to TechCrunch. The agreement, reportedly worth several billion dollars, gives Thinking Machines access to advanced systems powered by Nvidia’s (NVDA) latest GB300 chips. In addition, the deal includes the infrastructure needed to train and run AI models at scale. Notably, this deal fits into Google’s overall strategy.
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Forget margin or options. Here's how the pros trade AMZNIndeed, the company has been actively signing agreements with AI developers by bundling cloud services like storage, databases, and computing tools into one offering. For example, Anthropic recently partnered with Google for large-scale AI capacity. However, competition remains intense, as Anthropic also secured a separate deal with Amazon (AMZN) for up to 5 gigawatts of computing power. Because of this, Google appears to be moving quickly to lock in promising AI companies like Thinking Machines early, even though the deal is not exclusive.
What Does Thinking Machines Lab Do?
Interestingly, Thinking Machines, founded in 2025 and backed by billions in funding, is developing a tool called Tinker that helps automate the creation of advanced AI models. This system relies heavily on reinforcement learning, which is a method that requires significant computing power. As a result, access to Google’s latest infrastructure is critical, especially since the new systems can deliver roughly double the speed of previous hardware.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $387.68 per share implies 14.8% upside potential.
