In a bold move to strengthen its cloud security capabilities, Alphabet Inc., the parent company of Google, has announced its largest acquisition yet—buying Israeli cybersecurity startup Wiz for a staggering $32 billion. This deal, one of the most expensive in the cybersecurity industry, is a strategic attempt by Google to challenge Amazon Web Services (AWS) and Microsoft Azure in the ever-growing cloud computing market.
Why Is Google Paying Such a High Price for Wiz?
Wiz, founded in 2020, has quickly emerged as a leader in cloud security, offering advanced threat detection and risk mitigation solutions. The company works with major cloud providers, including AWS, Microsoft Azure, and Google Cloud, and counts global brands such as Morgan Stanley, BMW, and LVMH among its customers.
This deal marks a significant increase in Wiz’s valuation, which stood at $12 billion in mid-2024 during its last private funding round. With an annual recurring revenue exceeding $500 million, Wiz has demonstrated rapid growth and strong market demand for its cloud security solutions.
A Deal That Was Years in the Making
Alphabet had initially offered $23 billion for Wiz in 2024, but the startup rejected the bid. However, Google Cloud CEO Thomas Kurian remained persistent, keeping discussions open with Wiz’s leadership. The negotiations gained momentum in early 2025, especially after Donald Trump returned to the White House, bringing renewed scrutiny on Big Tech acquisitions.
Alphabet’s willingness to increase its bid to $32 billion and agree to a hefty $3.2 billion termination fee highlights its commitment to making Wiz a central part of its cloud security strategy.
What This Means for Google Cloud
Google’s cloud business has been growing at a rapid pace, generating over $40 billion in revenue in 2024 and outpacing its core search business in recent years. However, Google still lags behind AWS and Microsoft in the enterprise cloud market.
Acquiring Wiz gives Google a significant edge in cybersecurity, an area where businesses are increasingly investing due to rising cyber threats. The acquisition aligns with Google’s goal of offering a more secure and comprehensive cloud service, which could attract more enterprise customers.
Regulatory and Market Challenges
Despite Google’s assurances that Wiz will continue working with competing cloud platforms, regulators may still scrutinize the deal. The U.S. Department of Justice (DOJ) has an ongoing antitrust case against Google’s ad tech business, and the Federal Trade Commission (FTC) is investigating Microsoft’s cloud computing dominance.
Some industry experts believe that the interoperability of Wiz’s services across multiple cloud providers could help Google avoid regulatory pushback. However, investors are watching closely, as Google has faced criticism in the past over its large acquisitions and capital allocation strategies.
What’s Next?
Alphabet expects the deal to close by 2026, pending regulatory approvals. If successful, this acquisition will not only reinforce Google Cloud’s security capabilities but also solidify Israel’s reputation as a global cybersecurity powerhouse.
With increasing investments in cybersecurity and cloud services, this deal could reshape the competitive landscape of cloud computing for years to come.
