Google has finalized a $32 billion deal to acquire cybersecurity firm Wiz, marking the biggest acquisition in the company’s history. The announcement comes at a time when Google faces increasing scrutiny over its market dominance and potential antitrust actions.
Expanding Cloud Security Amid AI Boom
The acquisition, revealed on Tuesday, is a strategic move to bolster Google’s cloud computing division as artificial intelligence (AI) continues to drive demand for data centers. Google is competing with industry giants Microsoft and Amazon in the cloud space, and integrating Wiz’s security technology is expected to enhance its offerings.
Pending regulatory approval, Wiz will become part of Google Cloud, a division that has grown significantly in recent years. While Google’s primary revenue still comes from search and advertising, its cloud division saw revenue rise from $26.3 billion in 2022 to $43.2 billion in 2023, a 64% increase.
Wiz’s Rapid Growth and Strategic Fit
Founded in 2020 by four Israeli entrepreneurs who met in the military, Wiz has rapidly grown into a leader in cloud security, with projected revenues of $1 billion this year. The company, now headquartered in New York, provides cybersecurity solutions that protect data stored in cloud environments.
“Wiz and Google Cloud share a vision for making cloud security simpler, more intelligent, and more accessible to organizations of all sizes,” said Wiz CEO Assaf Rappaport in a blog post.
Google’s Biggest Deal Yet
Google CEO Sundar Pichai emphasized that Wiz’s integration will improve cloud security while reducing costs for customers. He also hinted that the acquisition could help Google regain lost ground in the competitive cloud market. Google has reportedly pursued Wiz for some time, increasing its offer from a previous $23 billion bid rejected in mid-2024.
This deal surpasses Google’s previous record acquisition of Motorola Mobility for $12.5 billion in 2012. It also ranks as the largest cybersecurity acquisition ever and one of the 20 biggest software company takeovers in history, according to Mergermarket.
Market Reaction and Industry Impact
Despite the deal’s significance, Alphabet’s stock fell 2% to close at $160.67 following the announcement— a common reaction to large acquisitions. Industry analysts view this move as a direct challenge to competitors like Microsoft and Amazon, which have been investing heavily in cybersecurity.
Google’s previous acquisitions, including YouTube ($1.76 billion in 2006) and DoubleClick ($3.1 billion in 2008), have proven highly successful. The company’s $5.4 billion purchase of cybersecurity firm Mandiant in 2022 also contributed to its cloud division’s strong performance, which reported a $6.1 billion operating profit last year.
Regulatory Challenges Ahead
The acquisition is expected to face scrutiny from U.S. and international regulators. Google is already entangled in multiple antitrust cases, including a Justice Department lawsuit over its dominance in digital advertising and another ruling that deemed its search engine an illegal monopoly. Regulators may closely examine the Wiz deal’s impact on competition in the cybersecurity sector.
The business watchdog group Demand Progress Education Fund has urged regulators to block the acquisition, arguing that it could further concentrate power in Big Tech. “It’s time to show whether regulators have the guts to stop another major takeover by one of the most dominant tech firms,” said Emily Peterson-Cassin, the group’s director of corporate power.
Despite regulatory hurdles, Google and Wiz remain optimistic about completing the deal. If approved, the acquisition is expected to close in 2026, paving the way for a new era in cloud security and AI-driven computing.
