Google parent company Alphabet (GOOGL) is creating of a new artificial intelligence (AI) sales team for its cloud-server rental unit.
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The technology giant and AI leader is forming the new team comprised of salespeople and engineers to attract more spending from privately held AI customers such as Anthropic and Cohere. The team will also work with software providers such as Snowflake (SNOW), GitLab (GTLB), and Elastic (ESTC) in hopes that they will refer customers to Google Cloud.
The new Google Cloud sales team will mirror other teams at the company that target customers in specific industries such as retail and life sciences. Alphabet is ramping up its focus on AI to start the new year as it acquires more microchips and processors from Nvidia (NVDA) to be used by AI cloud customers.
Some Layoffs
The formation of the new AI sales team has led Alphabet to disband a sales division that worked with customers in the central U.S., resulting in about 60 layoffs at the company. However, some impacted employees might be able to find other positions within Alphabet.
News of the AI sales team comes as Google Cloud’s financial performance improves, generating a record $1.9 billion in profit in the company’s most recent quarter. Alphabet continues to rollout new AI products, including a new model of its large language model called “Gemini” at the end of last year.
GOOGL stock has risen 35% in the past 12 months.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 31 Wall Street analysts. That rating is based on 24 Buy and seven Hold recommendations assigned in the last three months. The average GOOGL price target of $215.75 implies 12.95% upside from current levels.
