Google has announced its largest-ever acquisition, securing a $32 billion deal to acquire Wiz, a New York-based cybersecurity firm. This strategic move will integrate Wiz into Google Cloud, reinforcing Google’s commitment to strengthening cloud security and expanding multicloud capabilities in the AI-driven era.
A Strategic Leap in Cloud Security
With cyber threats escalating worldwide, Google is investing heavily in advanced security solutions. “This acquisition represents an investment by Google Cloud to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds (multicloud),” the company stated.
Sundar Pichai, CEO of Google, emphasized the importance of security in today’s digital landscape: “From its earliest days, Google has been a leader in keeping people safe online. Today, businesses and governments running on the cloud need even stronger security solutions and greater flexibility in choosing cloud providers. Together, Google Cloud and Wiz will supercharge cloud security and multicloud capabilities.”
Alphabet’s Cloud Ambitions and Competitive Edge
Google’s parent company, Alphabet Inc., is doubling down on cybersecurity to solidify its position in the competitive cloud-computing market, where it faces stiff competition from Amazon Web Services and Microsoft Azure. The acquisition will expand Google Cloud’s security offerings, enabling businesses to better protect themselves against cyber threats.
Alphabet had initially proposed a $23 billion bid for Wiz in 2023, which was declined. Over the past year, Wiz’s valuation soared to $12 billion, with annual recurring revenue surpassing $500 million by mid-2024. The acquisition talks gained momentum in early 2025, particularly after Donald Trump’s return to the White House, amid continued regulatory scrutiny of Big Tech.
Financial and Regulatory Considerations
To close the deal, Alphabet agreed to a significantly higher price, accompanied by a termination fee exceeding $3.2 billion—one of the largest in M&A history. Despite the high valuation, analysts believe the acquisition is a critical move to strengthen Google’s ability to compete with Microsoft Azure in the enterprise cloud market.
“For Google to remain competitive with Microsoft Azure in the enterprise cloud sector, it must offer a more comprehensive suite of services, including top-tier security software,” said Gil Luria, an analyst at D.A. Davidson.
Google Cloud, which generated over $40 billion in revenue in 2024, has been outpacing the company’s search business in growth. However, Alphabet’s stock dipped nearly 3% following the announcement, reflecting investor concerns over the acquisition’s cost and the broader challenges facing the tech sector.
What’s Next for Wiz?
Following the acquisition, Wiz will continue to provide cybersecurity solutions across all major cloud platforms, including Amazon Web Services and Microsoft Azure, maintaining its commitment to interoperability. Wiz’s clientele includes major enterprises such as Morgan Stanley, BMW, and LVMH.
The deal is expected to be finalized in 2026, pending regulatory approval. Given ongoing antitrust scrutiny of Big Tech—such as the U.S. Department of Justice’s case against Google’s advertising technology and an FTC investigation into Microsoft’s cloud computing practices—regulatory bodies are likely to scrutinize the acquisition closely.
While Google has assured that Wiz will continue its multi-cloud approach, experts caution that any future exclusivity agreements could raise regulatory red flags. “If Google imposes exclusivity agreements on Wiz’s services, it would be a significant concern,” said Elise Phillips, policy counsel at Public Knowledge.
A Bold Bet on Cybersecurity
With cybersecurity threats on the rise, this acquisition highlights Google’s strategic focus on strengthening cloud security. Israel’s cybersecurity sector, known for producing successful startups, has seen multiple acquisitions by Silicon Valley giants. Notably, Wiz’s founders previously sold their cloud security firm, Adallom, to Microsoft in 2015, cementing Israel’s reputation as a global leader in cybersecurity innovation.
By acquiring Wiz, Google is making a decisive move to future-proof its cloud business, ensuring robust, scalable, and secure solutions for enterprises in an AI-driven world.
