Liberty’s strategic partnership with Google Cloud comes ahead of Alphabet’s Q4 earnings, where analysts are expecting continued cloud and AI-driven growth
Liberty Global and Google Cloud have unveiled a five-year strategic partnership aimed at embedding artificial intelligence across Liberty’s European telecoms operations and bringing AI-driven services to millions of customers – whether they want them or not – a tie-up that arrives just days before Google Cloud’s parent Alphabet is due to report its fourth-quarter results on 4 February (US time).
The deal will see Liberty Global integrate Google Cloud’s AI technologies, including the Gemini models, into its consumer services and products. Under the agreement, which builds on existing collaborations in areas such as Atlas Edge, Formula E and Liberty Blume, approximately 80 million fixed and mobile connections across Liberty’s European footprint – including the UK, Ireland, Belgium, the Netherlands and Switzerland – could see AI-enhanced experiences on platforms like Liberty’s Horizon TV.
The operator said that the partnership will “accelerate Liberty Global’s digital transformation and embed AI at scale throughout its European operations,” bringing “the power of Gemini and other Google products into millions of customers’ homes.” The companies also expect to work on improvements in network scalability, security and operational efficiency and explore opportunities to run Google Cloud services within Liberty’s own data centres to meet excess customer demand.
The strategic priorities of the collaboration include several well-trodden AI talking points including delivering AI-driven customer value by integrating Gemini models into consumer experiences for smarter content search and discovery and enhanced customer care; cloud optimisation with AI-first programmes to improve network performance and autonomous operations; and unlocking new revenue growth via services for small and medium enterprises, data monetisation initiatives and expanded smart-home and device offerings. The announcement is not clear whether the unlocked revenue growth will be Liberty’s or Google’s.
Liberty Global chief executive Mike Fries (above) described the expanded partnership as a “significant milestone” that will modernise infrastructure and create “new revenue opportunities and products that will benefit millions of consumers across our operating companies”. Google Cloud EMEA president Tara Brady added that the aim was “to use technology to cut through complexity and bring value to our customers and partners.”
Cloud nine
The timing of the announcement dovetails with growing investor focus on Alphabet’s forthcoming quarterly results. Analysts polled ahead of the 4 February earnings release expect Alphabet’s total revenue to grow about 15 per cent year-on-year to roughly $111-112 billion, with adjusted earnings per share of around $2.64-$2.65 and robust growth in Google Cloud revenue cited as a key driver. Cloud is forecast to expand by more than 30 per cent in Q4, with some estimates putting cloud revenue growth near 35 per cent.
Investors will be watching not only the headline figures but also commentary on the cloud segment, where AI adoption and enterprise demand are seen as critical to validating Alphabet’s long-term valuation narrative. Continued strength in AI and cloud could bolster confidence so the Liberty deal should be viewed as part of the narrative Google will push around operators embedding generative AI into consumer and network services.
