Google has announced a $32 billion agreement to acquire cybersecurity firm Wiz, marking its largest acquisition to date. The deal, if approved by regulators, will integrate Wiz into Google Cloud, a rapidly growing division within the tech giant.
The move comes as Google accelerates its expansion into cloud computing amid increasing demand for artificial intelligence (AI) infrastructure. With competition from Microsoft and Amazon, the acquisition is seen as a strategic step to strengthen Google’s cybersecurity capabilities.
Wiz, founded in 2020 by former Israeli military colleagues, specializes in cloud security and is expected to generate $1 billion in revenue this year. CEO Assaf Rappaport stated that the company shares Google’s vision of making cloud security more accessible and intelligent.
Google CEO Sundar Pichai emphasized that Wiz’s expertise would enhance Google Cloud’s security at lower costs. Analysts view the acquisition as a competitive challenge to Microsoft and Amazon, both of which have invested heavily in cybersecurity.
The deal surpasses Google’s previous record acquisition of Motorola Mobility for $12.5 billion in 2012 and ranks among the largest software buyouts in history. However, the announcement led to a 2% drop in Alphabet’s shares, reflecting investor caution.
Meanwhile, Google faces regulatory scrutiny over its market dominance. It is currently entangled in antitrust cases, with potential outcomes that could reshape its business operations.
Despite these challenges, Google remains committed to expanding its cloud division, betting on cybersecurity as a critical component of its growth strategy.
