Google's $32 billion acquisition of Wiz marks its biggest deal yet, strengthening its cloud security push amid rising AI-driven data center demand
Google’s parent company Alphabet is set to buy Wiz, the cloud security start‑up, for $32 billion in an all‑cash transaction. Announced on Tuesday by Google, this is the biggest acquisition in the company’s history as it eyes to compete in the cloud‑computing race against Amazon and Microsoft.
A source previously described the deal as being valued at $33 billion. To ensure employee retention following the acquisition, Google is also providing $1 billion in retention bonuses in addition to the purchase price. With 1,700 employees at the company, this averages over $588,000 per employee, though actual amounts may vary based on individual salaries.
Wiz will continue to operate as an independent platform, supporting all cloud providers, not just Google Cloud Platform. The company also plans to expand its workforce and pursue additional acquisitions, a strategy it has been developing over the past year.
In addition to intensifying competition between Google and tech giants Microsoft and Amazon, the growing demand for data centers, driven by the AI boom is further fueling industry rivalry.
Through this agreement, Wiz will become part of Google's cloud division, enhancing the company's efforts to deliver cybersecurity solutions that help businesses mitigate major risks. Independent from Google's search and advertising divisions, which account for most of parent company Alphabet's $350 billion annual revenue, the cloud segment is expected to gain greater significance.
The firms expect to finalize the acquisition in 2026, though regulatory and other approvals are still pending. Previously, Google's largest acquisition was its $12.5 billion purchase of Motorola Mobility in 2011. The acquisition process has been ongoing for nearly a year, with negotiations gaining momentum this week at a reported cost of $30 billion.
Google's cloud division has emerged as a rising star since the advent of AI, with its revenue surging 64% to $43.2 billion in 2023, up from $26.3 billion in 2022.
Wiz, a five‑year‑old company founded in Israel in 2020 by four friends who first met in the Israeli army, is projected to generate $1 billion in revenue this year. Operating from its offices in New York, Wiz develops security products designed to protect data centers.