This article first appeared on GuruFocus.

Amazon (NASDAQ:AMZN) and Google (GOOGL) just pulled off a rare move in the cloud arena, introducing a jointly built multicloud networking service that could reshape how enterprises move data across platforms. The timing is striking: customers will now be able to establish private, high-speed links in minutes, a shift that lands barely a month after an October 20 AWS outage disrupted thousands of websites and hit major apps like Snapchat and Reddit. Analytics firm Parametrix estimated that U.S. companies could face between $500 million and $650 million in losses from that single event, a reminder of how costly even brief interruptions have become.

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The two companies paired AWS’ Interconnectmulticloud with Google Cloud’s Cross-Cloud Interconnect, a setup that could make cross-platform transfers less of a bottleneck as workloads spread out. Executives on both sides framed it as a meaningful step toward smoother interoperability, with AWS’s Robert Kennedy and Google Cloud’s Rob Enns highlighting how this approach might lower friction for customers shifting data and applications. Salesforce is already among the early users, suggesting that large enterprises could be testing this architecture ahead of wider adoption.

What stands out to investors is how this partnership fits into a broader infrastructure race fueled by AI demand. Alphabet, Microsoft and Amazon are pouring billions into systems built to handle surging internet traffic, and the latest collaboration could be interpreted as an effort to reinforce reliability while growth accelerates. AWS remains the world’s largest cloud provider, and its third-quarter revenue of $33 billion more than doubled Google Cloud’s $15.16 billion. In a market where scale, speed and resilience are converging into a single competitive equation, this joint network may be another signal that the cloud leaders are preparing for a far heavier AI-driven load ahead.