Citi to use Google Cloud to modernize tech infrastructure

Citigroup (NYSE:C) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL) signed a multiyear agreement to support Citi’s digital strategy through cloud technology and artificial intelligence, the companies said on Monday.

The bank will move multiple workloads and applications to Google Cloud’s infrastructure. The tech infrastructure modernization will help improve its digital products, streamline employee workflows, and run high-performance computing (“HPC”) and analytics platforms. That includes using advanced HPC to facilitate the execution of millions of computations daily in Citi’s Markets business.

Alphabet (NASDAQ:GOOG) class C shares rose 0.9%, and Citi (NYSE:C) stock climbed 3.7% in Monday afternoon trading.

As part of the agreement, Citi (C) will use Google Cloud’s (GOOG) Vertex AI platform to provide generative AI capabilities across the company.

Google Cloud incorporates multiple layers of security such as data encryption at rest, in transit, and in use with Confidential Computing, Google said.

During its Q3 earnings, call the Citi (C) Chief Financial Officer Mark Mason spoke about technology as one of the drivers to help it achieve its cost savings target of ~$1.5B. In simplifying its tech infrastructure, the company has retired more than 450 applications year-to-date.