Britain’s Vodafone Group PLC (GB:VOD) has announced a 10-year, billion-dollar-plus deal to tap the AI (artificial intelligence) expertise of Alphabet’s Google (GOOGL). The partnership will help Vodafone push AI-powered devices using Gemini models to customers across Europe and Africa. Vodafone shares were trading down by 0.26% as of writing.
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Vodafone is a telecommunications company providing a wide range of services, such as voice, messaging, and internet connectivity, through both fixed and mobile networks.
Google and Vodafone Strengthen AI Partnership
As part of the partnership with Google, Vodafone will provide its customers access to enhanced storage, security, and AI tools in 15 countries, along with partners in 45 additional markets. In return, Google will leverage Vodafone’s fixed and mobile networks to boost workforce efficiency.
Additionally, Vodafone announced plans to increase the availability of Google’s AI-powered Pixel devices through its 5G network in Europe. Vodafone also stated that it will offer Google One AI Premium subscription packages, including Gemini Advanced, in select countries by 2025.
Furthermore, both companies will enhance Vodafone TV with Google Cloud’s AI for better content discovery, rewards, and ads. They will also explore deeper YouTube integration on Vodafone TV devices.
Currently, Google is in the AI race against companies like ChatGPT-maker OpenAI, which has backing from Microsoft (MSFT) and NVIDIA (NVDA). Google and other tech giants such as Apple (AAPL) and Samsung (GB:SMSN) are competing to attract customers with cutting-edge generative AI features in their latest devices.
Is Vodafone a Good Stock to Buy?
According to TipRanks, VOD stock has a Moderate Buy consensus rating based on 10 recommendations, including four Buys. The Vodafone share price target is 93.67p, which implies an upside of 26% on the current trading levels. The price target has a high forecast of 140p and a low forecast of 65p.
