Aiming to capitalize on the speedier wireless connections 5G networks provide, Alphabet's Google (GOOG -2.57%) (GOOGL -2.45%) is partnering with AT&T (T 0.05%) to deliver 5G services to business customers.
Under the new arrangement, which the companies announced last week, they will jointly develop and test software and data products. They're going after the retail, manufacturing and transportation markets initially, but could expand into other areas. AT&T will offer its 5G business customers those services through Google Cloud.
"Our co-innovation with AT&T aims to bring a multitude of 5G and Edge Computing solutions to address a diversity of use cases, driving real business value in industries like retail, manufacturing, gaming and more," Thomas Kurian, CEO of Google Cloud said in the press release announcing the arrangement. The companies are also working on new tools that will enable third parties to build 5G solutions using Google Cloud and the AT&T network.
Google isn't the only technology company teaming up with a wireless carrier to take advantage of the 5G build-out. Late last year, Amazon Web Services, the cloud computing unit of Amazon (AMZN -2.49%) announced a similar collaboration with Verizon Communications (VZ -0.37%).
Google has lately been pouring money and attention into its cloud computing business, which it views as its next big growth driver. With the growth of its ad revenues slowing, Google has been looking for ways to diversify. Last year, it brought on Kurian to head up the cloud unit with the aim of eventually building it into a player that rivals market-leader Amazon Web Services or Microsoft's (MSFT -1.32%) Azure, itself a distant No. 2 to AWS. It has been in acquisition and restructuring mode since then, with the stated goal of growing the unit into a $25 billion annual business.