Google announced on Tuesday that it will acquire the cloud security platform Wiz for $32 billion, emphasizing the growing need for stronger cybersecurity as artificial intelligence (AI) becomes increasingly integrated into technology infrastructures.
The all-cash acquisition will bring Wiz into the Google Cloud fold, enhancing the ability for users to work across “multiple clouds” and offering “an end-to-end security platform for customers of all sizes and types in the AI era,” the companies said in a joint statement. The partnership aims to address the rising importance of cybersecurity in defending against new threats and safeguarding national security in an age of AI.
This transaction, which marks the largest-ever acquisition by Google or its parent company Alphabet, could test US President Donald Trump’s stance on major mergers, especially after the Biden administration expressed resistance to such large deals.
Although Alphabet was close to acquiring Wiz last summer, the deal fell through as the company opted to remain independent with plans for an initial public offering (IPO), as stated by CEO Assaf Rappaport in a message to employees at the time.
Wiz was founded in 2020 by Rappaport, an Israeli-born entrepreneur, and a team who previously sold a company to Microsoft. The company is based in New York with additional offices in three other US cities and Tel Aviv.
In a webcast following the announcement, Rappaport explained that Wiz provides a service that “continuously scans an organization’s code and cloud environments, monitoring them in real time” to “prioritize critical risks based on real impact and block active threats.”
After the deal is finalized, Wiz will operate under Google but continue to offer services to other major cloud providers, including Amazon Web Services and Microsoft Azure, similar to how Mandiant, a cybersecurity firm acquired by Google three years ago, operates.
Google Cloud CEO Thomas Kurian explained, “With Wiz, we believe we will vastly improve how security is designed, operated, and automated, providing an end-to-end security platform for customers to prevent, detect, and respond to incidents across all major clouds.”
Google’s cloud business has seen impressive growth, with $43 billion in revenue for 2024, reflecting nearly a 31% increase from the previous year.
Wedbush analyst Dan Ives noted that the Google-Wiz deal could signal the beginning of more mergers and acquisitions in the tech industry, especially with the departure of Lina Khan, the former chair of the Federal Trade Commission, who was seen as opposed to industry consolidation.
Ives added that the cybersecurity sector is particularly ripe for deals as more cloud providers seek to secure their portfolios and cyber companies look to expand by acquiring undervalued firms and enhancing their offerings.
Shares of Alphabet, Google's parent company, dropped 3.8% in morning trading.
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