Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Alphabet's subsidiary has just locked in a strategic deal worth nearly $10 billion with cybersecurity firm Palo Alto Networks.
According to a report from Watcher Guru, this long-term contract stands as the largest security service deal ever achieved by Google Cloud.
This partnership isn't just your average contract extension, as the main focus is deep AI integration. As explained by CNBC, Palo Alto Networks is now officially utilizing Google's Gemini AI models and Vertex AI platform to beef up its defense systems.
Key Takeaways
- Google Cloud secured a deal worth nearly $10 billion with Palo Alto Networks.
- GOOGL stock price is up over 60% this year thanks to positive AI sentiment.
- Palo Alto Networks will migrate key internal workloads to Google Cloud infrastructure.
Cybersecurity Synergy and AI Ambitions
Alphabet Inc.'s ambition is becoming clearer as they also team up with Meta Platforms, Inc. in a separate initiative.
Based on info from Watcher Guru, this collab aims to optimize Google's AI chips so they can run PyTorch software better than products from NVIDIA Corporation.
However, investors still need to watch out for regulatory risks looming over the company's performance in the European market.
Watcher Guru reports that Google is still facing potential huge fines from EU authorities regarding allegations of non-compliance with the Digital Markets Act.
Direct Impact on Your Portfolio
News of this jumbo deal was immediately met with a positive response from the market, with Alphabet's stock price rising at last Friday's close.
Data from Watcher Guru shows that this tech stock's performance has skyrocketed 60% year-to-date thanks to their aggressive investment in the AI infrastructure sector.
Market analysts assess the company's position is becoming increasingly solid, with their AI chip tech valuation now estimated to reach $900 billion.
Palo Alto Networks President, BJ Jenkins, in his statement to Watcher Guru emphasized that this partnership is crucial to answering cybersecurity threats in the AI era.
Reference:
- Watcher Guru, Google Cloud Seals $10B Palo Alto Deal, Alphabet (GOOGL) Climbs. Accessed on December 22, 2025
- CNBC, Palo Alto Networks announces multibillion-dollar deal with Google Cloud. Accessed on December 22, 2025
- Featured Image: Shutterstock
Disclaimer
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