Google’s parent company, Alphabet, on Tuesday announced the taking over of cloud security startup Wiz for $32 billion in cash, its biggest acquisition ever. This move aims to strengthen Google Cloud’s security offerings, intensifying its rivalry with Amazon Web Services (AWS) and Microsoft Azure.
With cybersecurity and AI reshaping tech, Google’s $32 billion bet on Wiz signals a major push to dominate the cloud computing market.
Google and Wiz: A Cloud security powerhouse
The deal dwarfs Google’s prior record—$12.5 billion for Motorola Mobility in 2011. Wiz, founded in 2020 by Israeli entrepreneurs, boasts $700 million in annual recurring revenue (ARR), projected to hit $1 billion by 2025’s end. Its platform, serving clients like BMW and Morgan Stanley, enhances cloud security across AWS, Azure, and Google Cloud. After talks collapsed in 2024 over a $23 billion offer, a friendlier regulatory climate and Wiz’s $16 billion valuation in a secondary sale paved the way for this $32 billion agreement, set to close in 2026 pending approval. Wiz will operate independently within Google Cloud, retaining its multicloud edge.
Why Cloud Security is Critical for Google now
Cloud security is a hot priority as AI-driven cyberattacks surge alongside cloud adoption. Wiz’s real-time risk detection and mitigation tools tackle these threats, making it a perfect fit for Google Cloud, which trails AWS (31 percent market share) and Azure (25 percent with 12 percent. Past buys like Mandiant ($5.4 billion) helped, but Wiz’s growth—doubling Annual Recurring Revenue in a year—offers a bigger leap. “AI and cloud services have changed the security game,” Google stated, eyeing enterprise clients wary of breaches.
At 64 times Wiz’s ARR, the $32 billion price tag raised eyebrows—Google’s stock dipped nearly five percent on March 18. Yet, analysts see it as a smart play to challenge Microsoft’s Azure security suite and AWS’s dominance. Wiz complements Google’s AI and tools like Chronicle, potentially offsetting AI investment risks. “Google needs robust cloud security to win enterprises,” said D.A. Davidson’s Gil Luria. Wiz’s multicloud support also appeals to firms avoiding single-vendor reliance.
What Wiz brings to Cloud computing
For Google Cloud customers, Wiz promises tighter security without lock-in. “Google Cloud and Wiz will turbocharge cloud security across platforms,” said CEO Sundar Pichai. Wiz CEO Assaf Rappaport added, “Joining Google accelerates our mission.” The deal includes a $1 billion retention bonus for Wiz’s 1,700 employees, averaging over $588,000 each, ensuring talent stays. It also hints at industry consolidation, with tech giants boosting cybersecurity innovators.
Regulatory scrutiny looms. Despite a merger-friendly U.S. administration, the FTC may probe the deal’s competitive impact, especially after Google’s 2024 search monopoly ruling. If approved, closure by 2026 could redefine cloud security. Failure risks stalling Google’s ambitions against AWS and Azure.
Google’s Big Cloud Security Bet
Google’s $32 billion Wiz acquisition is a bold bid to lead in cloud security and computing. As of March 18, 2025, it’s a high-stakes move to close the gap with rivals, leveraging Wiz’s prowess to secure enterprise trust. Success hinges on regulatory green lights and integration, but for now, Google is all-in on a safer, stronger cloud future.