Google’s parent company, Alphabet (GOOGL.O), announced on Tuesday that it will acquire cybersecurity startup Wiz for $32 billion in an all-cash deal, marking its largest acquisition to date. The move strengthens Google’s position in the cloud computing market as it competes with Amazon Web Services and Microsoft Azure.
The acquisition price is significantly higher than the $23 billion Google had previously offered for Wiz last year before regulatory concerns stalled the deal.
By integrating Wiz’s AI-driven cybersecurity technology, Google aims to enhance its cloud security offerings, a key competitive factor amid the growing demand for generative AI-powered services like ChatGPT.
After a challenging regulatory climate in 2024 that hindered large-scale mergers, Wall Street is optimistic that the Trump administration may ease antitrust restrictions, making such deals more feasible.
Founded in 2020, Wiz has rapidly grown into one of the industry’s top cloud security providers. The company was valued at $12 billion in a funding round last May. Following the collapse of its initial Google deal, Wiz had shifted its focus toward an IPO and expanding its recurring revenue streams.
The cybersecurity sector has seen a surge in investment following last year’s global CrowdStrike (CRWD.O) outage, which disrupted businesses worldwide and highlighted the need for stronger digital protections.
Wiz serves major cloud providers, including Amazon Web Services, Microsoft Azure, Oracle (ORCL.N), and Google Cloud, with high-profile clients such as Morgan Stanley (MS.N), BMW (BMWG.DE), and luxury giant LVMH (LVMH.PA).
Alphabet’s stock was down slightly in premarket trading. While Google shares gained 35% last year, they have declined 13% in 2025 as investors remain cautious about the company’s aggressive AI spending, particularly after the rollout of its lower-cost DeepSeek model.
Google did not specify a timeline for closing the deal but confirmed that Wiz will integrate into its cloud division while continuing to support all major cloud platforms.