Published 16:54 IST, July 15th 2020
Sundar Pichai: 'Google's $4.5 bn investment in Jio part of $10 bn Digitization Fund'
Google CEO Sundar Pichai said he is 'proud to partner' with Reliance Jio as the two companies will be partnering to develop cheap 5G smartphones.
Google CEO Sundar Pichai said he is 'proud to partner' with Reliance Jio as the tech giant will invest Rs 33,737 crores for 7.7 per cent stake in Jio Platforms. Mukesh Ambani, the chairman and managing director of Reliance Industries Ltd, announced the investment by Google during 43rd annual general meeting of Reliance Industries Limited.. Both the firms will now work together to come with a smartphone at a cost less than the current criteria in the market.
Pichai took to Twitter to respond to the announcement and said everyone should have access to the internet adding that the partnership will increase access for millions of Indians. He further announced an investment of $4.5B from the Google for India Fund.
Google invests in Jio platforms
"Today we signed an agreement to invest $4.5 billion (INR 33,737 crore) in Jio Platforms Ltd, taking a 7.73 percent stake in the company, pending regulatory review in India. This is the first investment from the Google For India Digitization Fund announced earlier this week, which aims to accelerate India’s digital economy over the next five to seven years through a mix of equity investments, partnerships, and operational, infrastructure and ecosystem investments," Pichai said. Ambani welcomed strategic partner Google in Jio platforms, announcing that it signed a binding partnership on July 15.
Jio and Google to develop smartphones
After selling over 100 million Jio Phones in the market until now, Ambani expressed confidence in designing an “entry-level 4G or even a 5G smartphone” along with the US-based company. Pichai, in his blog, mentioned that Google and Reliance will together work to rethink how millions of users in India can become owners of smartphones.
"Google and Jio Platforms have entered into a commercial agreement to jointly develop an entry-level affordable smartphone with optimizations to the Android operating system and the Play Store. Together we are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones. This effort will unlock new opportunities, further power the vibrant ecosystem of applications and push innovation to drive growth for the new Indian economy," said Pichai
Earlier during the event, Mukesh Ambani announced that the two firms will work together to bring entry-level 4G and 5G smartphones. The highlight of these phones is that they will cost much less compared to the current price in the market. These low-cost smartphones aim to increase internet access among millions of people in India.
"Have sold 100 million Jio Phones till date. But there are many feature phone users waiting to upgrade to a conventional smartphone. We believe we can design an entry-level 4G or even a 5G smartphone. We believe that we can design such a phone at a fraction of the current cost. Google and Jio are partnering to build a value-engineered Android-based smartphone Operation System,” Mukesh Ambani had said.
Google aims to increase smartphones and apps
The Google CEO said that the company's mission with Android has always been to bring the power of computing to everyone. He added that the company is humbled "by the way Indians have embraced Android over recent years." Pichai concluded by saying that "We look forward to bringing smartphone access to more Indians—and exploring the many ways we can work together to improve Indians’ lives and advance India’s digital economy."
"We think the time is right to increase our commitment to India significantly, in collaboration with local companies, and partnership with Jio is the first step. We want to work with Jio and other leaders in the local ecosystem to ensure that smartphones—together with the apps and services in the Play Store—are within reach for many more Indians across the country. And we believe the pace of Indian innovation means that the experiences we create for India can ultimately be expanded to the rest of the world," Pichai said.
Updated 20:06 IST, July 15th 2020