Benioff Responds to Reports on Cloud Partnership Talks
Salesforce (NYSE:CRM) CEO Marc Benioff took to social media to shut down reports claiming the company was in discussions with several tech firms regarding a significant cloud agreement to support its growing artificial intelligence (AI) workload.
Responding to a report from The Information, Benioff posted on X (formerly Twitter): “The story in @TheInformation is incorrect.” He clarified that while Salesforce had considered a fourth deployment option for its cloud services in 2024, the company ultimately decided to expand its partnership with Google Cloud instead.
Salesforce’s Strategic Cloud Expansion
Salesforce already offers its customers multiple cloud deployment options, including proprietary data centers, Amazon Web Services (AWS), and Alibaba Cloud. The decision to deepen its collaboration with Google will allow future Salesforce releases to deploy its Customer 360 apps, Hyperforce, Agentforce, and Data Cloud on Google’s cloud infrastructure.
The report from The Information alleged that Salesforce was negotiating a multi-billion-dollar cloud deal with Microsoft (MSFT), Google (GOOG) (GOOGL), and Oracle (ORCL), citing an interview with Srini Tallapragada, Salesforce’s President and Chief Engineering Officer. According to the outlet, the rumored deal would have been worth over $1 billion spanning multiple years.
Market Reaction and Industry Implications
Following the news, Salesforce shares fell 1.8% in late morning trading on Thursday. Investors were closely watching the cloud giant’s next move as AI-driven workloads increasingly demand scalable and efficient cloud solutions.
While Salesforce remains a dominant force in cloud computing and AI-powered enterprise software, Benioff’s swift denial signals that the company remains committed to its existing cloud strategy rather than pursuing a new, large-scale agreement.
