Alphabet has announced its largest acquisition to date with a $32 billion all-cash deal to acquire Wiz, reinforcing Google’s commitment to cybersecurity.
The move is aimed at enhancing its competitive edge against Amazon Web Services (AWS) and Microsoft Azure as cloud security becomes increasingly critical in the era of generative AI, Reuters news report said.
This acquisition follows a previous bid of $23 billion from Alphabet in 2023, which Wiz declined due to concerns over antitrust scrutiny and its own plans for an IPO.
Wiz, one of the fastest-growing cybersecurity firms, has reached a valuation of $12 billion in a VC funding round last May. The company works with major cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud, and serves high-profile clients such as Morgan Stanley, BMW, and LVMH.
By integrating Wiz into Google Cloud, Alphabet aims to bolster its cloud security offerings with AI-driven solutions that help enterprises mitigate cybersecurity risks. Wiz’s products will continue to be available across all major cloud platforms, ensuring its broad market reach remains intact. Alphabet anticipates completing the transaction in 2026, pending regulatory approvals.
Industry analysts view this acquisition as a strategic move to help Google Cloud compete effectively with Microsoft Azure for enterprise customers by expanding its suite of security services. Alphabet has made significant investments in cybersecurity, including its $5.4 billion acquisition of Mandiant in 2022, a deal that underscored its determination to fortify cloud security.
The focus on cybersecurity follows last year’s CrowdStrike outage, which disrupted businesses globally and increased corporate spending on security measures. This trend has driven interest in cybersecurity investments, with Google positioning itself as a leader in securing cloud environments against evolving threats.
Despite the substantial price tag, Alphabet maintains that its capital allocation plans remain unchanged. The company has set aside $75 billion in capital expenditure for 2025, primarily for AI-related investments. However, with $23.47 billion in cash and cash equivalents as of December 31, it may need to secure additional financing for the Wiz deal.
Following the announcement, Alphabet’s stock saw a nearly 3 percent decline in early trading, reflecting market weakness and investor concerns over its heavy AI expenditures. The stock had risen about 35 percent last year but has declined 13 percent this year amid growing competition from cost-effective AI alternatives like China’s DeepSeek.
Sundar Pichai, CEO of Google, said: “Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”
Wiz’s products will be available across all major clouds, including Amazon Web Services, Microsoft Azure, and Oracle Cloud platforms. Google Cloud will continue to offer customers wide choice through partner security solutions available in the Google Cloud Marketplace.
Assaf Rappaport, Co-Founder & CEO, Wiz: “Wiz and Google Cloud are fully committed to continue supporting and protecting customers across all major clouds, helping keep them safe and secure wherever they operate.”
A strategic shift?
Google Cloud’s acquisition of Wiz marks a strategic shift in its cybersecurity approach, reinforcing its commitment to providing end-to-end protection across multicloud environments. The deal enhances Google Cloud’s existing security offerings, which focus on detecting and responding to threats through services like Google Threat Intelligence, Google Security Operations, and Mandiant Consulting. These solutions provide organizations with actionable insights, automated threat detection, and expert guidance to mitigate cyber risks.
Wiz introduces a proactive layer of security, emphasizing prevention over response. Its cloud security platform seamlessly integrates with major cloud environments, enabling rapid scanning of infrastructure, code, applications, and services to identify potential attack paths. By leveraging advanced risk prioritization, Wiz empowers developers to secure applications before deployment, reducing vulnerabilities and strengthening overall security posture. Its innovations, including code-to-cloud security and cloud-native runtime defense, align with Google Cloud’s vision of making security more accessible and effective.
The integration of Wiz into Google Cloud will lead to a next-generation security platform that unifies threat intelligence and security operations. AI-powered cybersecurity agents will extend the capabilities of security teams, automating threat detection and response. Additionally, Mandiant’s expertise will complement Wiz’s proactive approach, providing organizations with incident response services, strategic readiness, and managed defense solutions. A key focus will be on measurable defense, allowing enterprises to continuously test and validate the effectiveness of their security controls.
Google Cloud’s long-standing commitment to multicloud security remains intact, ensuring that Wiz’s products continue to support AWS, Microsoft Azure, and Oracle Cloud, among others. This approach promotes customer flexibility while fostering competition and innovation in cloud security. Google Cloud will also maintain partnerships with other security providers, resellers, and system integrators, offering a broader range of security solutions to enterprises worldwide.
With cybersecurity threats evolving rapidly, Google Cloud’s acquisition of Wiz positions it as a leader in securing cloud environments at scale. The synergy between Wiz’s proactive security model and Google Cloud’s expertise in AI and infrastructure security will accelerate the adoption of robust cybersecurity solutions, ensuring enterprises can defend against emerging threats more effectively.
Baburajan Kizhakedath
