Google Wiz acquisition: A $32 billion bet on AI-driven cloud security

Google has announced the acquisition of Israeli cloud security startup Wiz for USD 32 billion in an all-cash deal, marking one of the largest cybersecurity acquisitions in history. Subject to regulatory approvals, Wiz will join Google Cloud to enhance its security capabilities across multicloud environments.

The deal underscores Google's efforts to strengthen cloud security, an area of growing importance as AI-driven applications and cloud infrastructure become increasingly complex. Wiz’s platform, which provides seamless cloud security across AWS, Azure, and Google Cloud, will continue to operate independently while integrating more deeply with Google Cloud’s offerings, the company said in a press release.

The acquisition follows Wiz’s rejection of a USD 23 billion buyout offer in July 2024, when the startup opted to pursue an IPO. A year later, Google sweetened its bid by 39% to USD 32 billion and proposed an increase in the breakup fee, up from USD 2 billion during the earlier offer to USD 3.2 billion, according to Reuters. 

This reverse termination fee aims to compensate Wiz if the deal collapses due to regulatory issues, significantly de-risking the acquisition of the cybersecurity startup. The substantial breakup fee—one of the largest ever for a tech deal—reflects Google's confidence in securing regulatory approval while signalling its commitment to expanding its cybersecurity capabilities.

Moreover, the change in the US administration under Donald Trump is seen as a critical factor in shifting expectations around antitrust scrutiny, making the deal more viable than it was a year ago. Industry analysts suggest that a friendlier regulatory climate under the new administration, especially a friendlier antitrust review, boosted the companies' confidence in pursuing the deal despite increasing global scrutiny of Big Tech mergers.

Why Did Google Pursue Wiz?

With cyber threats escalating globally, enterprises are seeking advanced, AI-powered security solutions that can protect cloud-native applications, detect breaches faster, and automate security operations. Wiz’s rapid scanning technology and real-time risk assessment give it a competitive edge in cloud security, making it an attractive asset for Google Cloud.

In a blog post announcing the deal, Thomas Kurian, CEO of Google Cloud, emphasised the growing complexity of modern cybersecurity. “As we all see in the news every day, and our Mandiant consultants witness on the front lines with our customers, cybersecurity risks continue to accelerate with the number and severity of breaches growing,” he wrote.

“Wiz is different from the security services we offer today. It delivers a seamless cloud security platform that connects to all major clouds and code environments to help prevent incidents before they happen.”
THOMAS KURIAN
CEO, Google Cloud

Kurian further highlighted the increasing reliance on multicloud and hybrid deployments, which introduce new security challenges. “Traditional approaches to cybersecurity struggle to keep up with this evolving landscape. Organisations with modern IT environments need a cybersecurity solution that spans multiple clouds, protects against threats to and from AI models, and integrates security throughout the development process,” he noted.

Google sees Wiz’s 70% annual revenue growth and USD 700 million in annualised revenue as validation of its potential. The deal also strengthens Google Cloud’s competitive positioning against Microsoft Azure and AWS, both of which have been aggressively expanding their security portfolios.

How the Deal Will Benefit Google and Its Customers

By acquiring Wiz, Google Cloud aims to offer an end-to-end security platform that enhances cloud security automation for businesses of all sizes. With cyber threats evolving rapidly, automation will allow organisations to detect, respond to, and mitigate attacks more efficiently, reducing the burden on security teams. Additionally, the deal is expected to lower security costs while improving efficiency, as Wiz’s platform helps enterprises streamline security controls across multiple cloud environments.

One of the most significant advantages of this acquisition is Wiz’s ability to protect AI models from emerging cybersecurity threats. As AI adoption grows across industries, securing AI-powered applications and infrastructure is becoming increasingly critical. Wiz’s technology will integrate with Google Cloud’s security operations and threat intelligence services, strengthening protections against AI-driven cyberattacks.

Kurian reinforced the acquisition’s strategic fit within Google Cloud, stating, “Wiz is different from the security services we offer today. It delivers a seamless cloud security platform that connects to all major clouds and code environments to help prevent incidents before they happen.”

Furthermore, the acquisition will accelerate multicloud adoption by providing seamless integrations across AWS, Azure, and Oracle Cloud. This ensures that enterprises using multiple cloud providers can implement a consistent security framework without vendor lock-in. Google Cloud has committed to keeping Wiz’s products available across all major cloud platforms, maintaining an open and interoperable security ecosystem.

Kurian also pointed to Wiz’s ability to complement Google’s security solutions, including Mandiant consulting services and Google Threat Intelligence. “Bringing Wiz and Google Cloud together will vastly improve how security is designed, operated, and automated—providing an end-to-end security platform for organisations of all types and sizes in the AI era,” he stated.

By combining Google Cloud’s industry-leading AI and security expertise with Wiz’s innovative approach to cloud security, the deal is set to enhance cybersecurity at scale, enabling organisations to secure their infrastructure more effectively while fostering innovation in cloud computing.

Added Assaf Rappaport, Co-Founder and CEO of Wiz: “This is an exciting moment for our company, but an even more important one for customers and partners, as this acquisition will bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise.”

With the transaction expected to close by late 2025, all eyes will be on how Google integrates Wiz’s technology while maintaining its commitment to an open security ecosystem. The move also solidifies Google’s ambition to dominate cloud security, AI-driven defence mechanisms, and multicloud interoperability. 

For enterprises and governments navigating increasingly sophisticated cyber threats, Google and Wiz's combined expertise is poised to redefine how cloud security is delivered at scale.