Alphabet Makes Historic $32B Bet on Cloud Security with Wiz

Alphabet, Google’s parent company, announced Tuesday its agreement to acquire cybersecurity firm Wiz for $32 billion in cash.

This deal marks Alphabet’s largest acquisition ever, far exceeding its $12.5 billion Motorola Mobility purchase in 2012. Wiz will integrate into Google Cloud once the deal closes in 2026.

The agreement comes after Wiz rejected Google’s previous $23 billion offer last year. Founded in 2020 by veterans of Israel’s elite cyber intelligence unit, Wiz quickly established itself as a cloud security leader.

The company currently generates approximately $700 million in annual recurring revenue and serves nearly half of America’s top 100 companies. Google CEO Sundar Pichai emphasized the strategic importance of strengthening cloud security capabilities as AI creates new risks.

“Organizations now seek more robust security measures and greater choices among cloud providers,” Pichai stated. The acquisition directly challenges Microsoft and Amazon in the competitive cloud market.

Wiz CEO Assaf Rappaport embraced the deal despite previously calling Google‘s earlier offer “humiliating.” “Joining Google Cloud will accelerate our innovation beyond what we could achieve independently,” Rappaport explained.

Wiz products will continue operating across all major cloud platforms, including competitors AWS and Azure. The acquisition addresses growing demand for advanced cybersecurity following high-profile incidents like the 2023 CrowdStrike outage.

Cloud security has become essential as businesses accelerate digital transformation while facing increasingly sophisticated threats. Wiz offers agentless scanning, risk assessment, and real-time threat detection across complex cloud environments.

The deal faces regulatory review, though many expect an easier path under the current administration. Wiz employs approximately 900 people globally and counts prestigious firms like Sequoia Capital and Index Ventures among its investors. The company was valued at $12 billion during its last funding round in May 2024.