Alphabet, Google’s parent company, has just signed off on its biggest acquisition to date. It is buying cybersecurity firm Wiz for a whopping $23 billion. This deal is Alphabet’s second attempt to acquire the company after talks stalled last year. Now, with regulatory hurdles still looming, Google is making a strong bet on cloud security—one that could reshape its competitive stance against Microsoft and Amazon. Alphabet plans to integrate Wiz into Google Cloud.
Founded by Israeli entrepreneurs, Wiz has made a name for itself by offering cloud-based security solutions that protect major enterprises, including Microsoft and Amazon. The company was valued at $12 billion in May 2024 but quickly climbed to $16 billion later that year due to its strong growth trajectory. The company was even preparing for an IPO before Google stepped in with this offer.
Wiz co-founder and CEO Assaf Rappaport is confident about the move, calling it a game-changer. “Becoming part of Google Cloud is effectively strapping a rocket to our backs,” he said. And he’s not wrong—Google’s deep pockets and expansive infrastructure will likely propel Wiz’s innovation at a pace it couldn’t achieve alone.
This acquisition will face scrutiny. Last year’s talks reportedly failed because of concerns over antitrust laws. This time, Google is taking a different approach. It has been confirmed that Wiz’s services will remain available on competitor platforms like Amazon Web Services, Microsoft Azure, and Oracle Cloud.
Despite this, the deal could still attract attention from regulators. The U.S. Federal Trade Commission (FTC), led by new chair Andrew Ferguson, has been strict on big tech. Alphabet is already dealing with two major antitrust lawsuits—one about its search engine monopoly and another related to its digital ads business. Adding another high-profile deal to the mix could lead to more regulatory pushback.
Google has been steadily increasing its investments in cybersecurity. In 2022, it acquired Siemplify and Mandiant—two major security firms—for $500 million and $5.4 billion, respectively. Mandiant is well known for exposing the SolarWinds hack, making Google a stronger player in cloud security.
Meanwhile, Microsoft has struggled with multiple security breaches, including attacks on government agencies. With the Wiz acquisition, Google is positioning itself as a more secure cloud provider. This could attract businesses looking for better protection against cyber threats.
If the deal gets regulatory approval, Google Cloud will become an even bigger player in cloud security. The move could give Google an edge over Microsoft, which has been dealing with security flaws. But the big question is whether regulators will let the deal go through.
For now, Google is making a strong push to lead in cloud security. Whether this turns into a long-term win or a legal headache remains to be seen.
