Merck signs USD $1 billion AI deal with Google Cloud
Merck has agreed a multi-year partnership with Google Cloud to deploy artificial intelligence tools across its business in a deal valued at up to USD $1 billion.
The agreement centres on the use of Google Cloud technology, including Gemini Enterprise, across Merck's research and development, manufacturing, commercial and corporate operations. Google Cloud engineers will work with Merck teams as the drugmaker expands AI across its business.
The programme is expected to support about 75,000 employees worldwide. Merck plans to use the system to digitise data and reshape internal processes across core parts of its operations.
Broad rollout
In research and development, Gemini Enterprise will be deployed across end-to-end workflows. In manufacturing, the focus will be on predictive analytics and automation. Commercial teams and patient-facing functions will use data-driven personalisation, while corporate functions will adopt AI-based automation aimed at lifting productivity.
The investment is one of the larger disclosed AI commitments in the biopharmaceutical sector, as drugmakers look to apply generative AI and software agents beyond pilot projects and into day-to-day operations. It also shows how large cloud providers are seeking deeper ties with pharmaceutical groups by embedding engineering teams directly into customer programmes.
Dave Williams, Chief Information and Digital Officer at Merck, described the deal as an expansion of the company's existing work with advanced technologies.
"Merck's collaboration with Google Cloud represents the next phase of our AI journey, extending our longstanding use of advanced technologies into an intelligent agentic ecosystem that will work alongside our teams, as we enter one of the most significant launch periods in our company's history. AI agents and generative tools will help our teams around the world reimagine processes at scale and bring scientific breakthroughs to patients faster," Williams said.
Sector push
Pharmaceutical companies have been testing AI across drug discovery, clinical operations, manufacturing and back-office work for several years, but many programmes have remained limited in scope. Larger rollouts are becoming more common as companies seek to connect AI systems with broader stores of scientific, operational and commercial data.
For Merck, the aim is to build what it calls an AI-enabled enterprise by linking scientific and data operations more closely with cloud-based tools. The effort will span the full pharma value chain rather than a single department or function.
Thomas Kurian, Chief Executive Officer of Google Cloud, said the partnership went beyond process changes.
"Our partnership with Merck represents a fundamental shift in how technology supports the entire pharma value chain. By deploying an industry-first agentic ecosystem powered by Gemini Enterprise, Merck is not just optimizing business processes; it is building a future where the speed of AI and the expertise of human ingenuity come together to bring drugs to patients faster and solve problems that were previously out of reach," Kurian said.
Merck, known as MSD outside the United States and Canada, is one of the world's largest biopharmaceutical groups. Google Cloud has been pushing its Gemini models and related AI products to large corporate customers across regulated industries, including healthcare and life sciences.
The partnership brings together Merck's internal scientific and data teams with Google Cloud engineers in a shared deployment effort across research, manufacturing, commercial operations and corporate functions.