Search engine giants, Google have just entered into a mouthwatering deal with Chinese tech company, Tencent in a patent cross-licensing agreement worth over $500b.
While much wasn’t stated on the terms of the deal, both companies are poised to make serious technological growth as they partner together on innovative projects. The partnership was described by Google as a long-term one which is expected to cover a broad range of products and technologies.
In a statement, Google indicated how pleased they were to enter into this deal with Tencent. The Head of Patents at Google reiterated that with both companies working closely on this agreement, tech companies around the world can focus on production of better products and services for their teeming user all around the globe.
Interesting, while Google’s core search service is blocked in China, this development between both companies, follows a string of development that has seen the firm ramp up in other areas in the country. In December, Google announced the creation of an AI Lab in Beijing, which is the first facility they have set up in China. With this service though, it is steadily and surely opening a presence in Shenzhen. Recently, Google even made an investment in Chushou which is an online streaming service in China.
Tencent, on the other hand, are not doing bad for themselves. This deal is also another meaningful global exercise from them as they have established a good reputation for themselves as one of China’s most influential tech giants. They are well-known for their hugely profitable gaming business and massively popular WeChat service. Tencent as a company has also made some major global moves in the past year with investments in major companies such as Tesla, Snap, and Spotify among others.
It is hoped that this collaboration between Google and Tencent should see more massive improvements in the tech world with the passage of time. In the end, we can be sure to expect some really good and innovative products in the foreseeable future.