Amazon (AMZN) Stock: Amazon and Google Forge Unlikely Alliance with New Multicloud Service

Tech giants Amazon and Google just shook hands on a multicloud deal—and Wall Street is scrambling to price in the implications.

Cloud Wars Take a Detour

Forget the old rivalry. Amazon Web Services (AWS) and Google Cloud are now officially playing nice, launching a joint service that lets businesses split workloads across both platforms. No more vendor lock-in. No more choosing sides. It's a pragmatic pivot that acknowledges a simple truth: enterprise clients want flexibility, not fanboyism.

The AMZN Angle

For Amazon, this isn't about ceding ground. It's a strategic expansion of the AWS ecosystem. By making it easier for Google Cloud customers to tap into AWS services—and vice versa—Amazon effectively widens its total addressable market. It turns potential competitors into conduits for revenue. The move signals confidence, not concession.

A Cynical Take from Finance

Let's be real—this 'coopetition' is less about kumbaya and more about cold, hard cash. Both companies saw enterprises building clunky, expensive workarounds to use multiple clouds and decided to monetize the friction they helped create. It's the tech equivalent of selling shovels during a gold rush you helped start. Wall Street will love the new growth narrative, even if it's just repackaging an old problem as a premium solution.

The bottom line? This alliance reshapes the cloud battlefield. It's a power play that prioritizes market capture over market conflict, and Amazon's stock is poised to reflect that calculated bet.

TLDR

• Amazon and Google launched a joint multicloud networking service on Sunday to improve connectivity between their cloud platforms
• The service reduces setup time for private, high-speed links from weeks to minutes
• Launch comes after an AWS outage on October 20 cost U.S. companies up to $650 million in losses
• Salesforce is among the early adopters of the new networking service
• AWS generated $33 billion in cloud revenue last quarter, more than double Google’s $15.16 billion

Amazon and Google announced a new multicloud networking service on Sunday. The joint offering aims to solve connectivity problems that have plagued cloud customers.

Amazon.com, Inc., AMZN

The service lets companies set up private, high-speed connections between AWS and Google Cloud in minutes. Previously, this process took weeks to complete.

The timing matters. An AWS outage on October 20 knocked thousands of websites offline, including Snapchat and Reddit. That single disruption will cost U.S. companies between $500 million and $650 million, according to analytics firm Parametrix.

Amazon and Google have joined forces to meet growing global demand for reliable connectivity and to offer a unified multicloud service. The new solution enables customers to establish high-speed connections between the two companies’ computing platforms within minutes. pic.twitter.com/UP6laAJH6n

— Swipeline (@Swipeline_Media) December 1, 2025

The new offering merges AWS’ Interconnect-multicloud with Google Cloud’s Cross-Cloud Interconnect. This combination improves how the two networks work together.

Robert Kennedy, vice president of network services at AWS, called it a fundamental shift in multicloud connectivity. Rob Enns from Google Cloud said the joint network makes it easier for customers to MOVE data and applications between clouds.

Early Adoption and Market Position

Salesforce has already signed on as an early user. The customer relationship management giant is testing the new connectivity approach.

AWS remains the world’s largest cloud provider. Microsoft’s Azure holds second place, with Google Cloud in third.

The cloud infrastructure race continues heating up. All three companies are pouring billions into building capacity for growing internet traffic and artificial intelligence demands.

Revenue Performance

AWS delivered strong numbers in the third quarter. The cloud division generated $33 billion in revenue during that period.

Google Cloud brought in $15.16 billion in the same quarter. That puts AWS revenue at more than double Google’s cloud business.

The gap shows why these partnerships matter. Google needs better connectivity options to compete with AWS’s market dominance.

Companies are increasingly using multiple cloud providers instead of relying on one. This multicloud approach reduces risk but creates complexity.

The new service addresses that complexity. It gives customers a faster, more reliable way to connect AWS and Google Cloud infrastructure.

Both companies benefit from the partnership. AWS strengthens its position as the go-to cloud provider. Google gains ground in making its cloud more attractive to large enterprises.

Tech giants continue investing heavily in infrastructure. The demand for computing power keeps growing as artificial intelligence applications expand.

Cloud outages have become costlier as more businesses depend on these services. The October AWS outage highlighted how much rides on reliable cloud connectivity.

The new service launches as both companies report their latest quarterly results. AWS generated $33 billion in third-quarter revenue, while Google Cloud brought in $15.16 billion.