In what marks Google‘s largest acquisition to date, Alphabet has agreed to purchase cloud security startup Wiz for $32 billion in cash. The deal, announced on March 18, 2025, dwarfs Google’s previous record purchase of Motorola Mobility for $12.5 billion in 2011.
Deal Specifics and Strategic Value
Wiz, a New York-based cybersecurity firm founded in 2020, specializes in protecting data across multiple cloud environments. The company has experienced rapid growth, with annual revenue jumping from $350 million last year to a projected $1 billion this year.
“The pace and impact of breaches are accelerating. AI brings new risks, but also new opportunities,” said Sundar Pichai, Google’s CEO, during a conference call announcing the acquisition.
The purchase aims to strengthen Google Cloud’s position against market leaders Amazon Web Services (AWS) and Microsoft Azure.
Multicloud Strategy
A key element of the deal is Wiz’s multicloud capability—the platform works across AWS, Microsoft Azure, Oracle Cloud, and other providers. Thomas Kurian, Google Cloud CEO, emphasized that Wiz will maintain this cross-platform functionality after the acquisition.
“If Wiz joined his division, it would continue working with other cloud providers including Microsoft, Amazon and Oracle,” Kurian stated during the announcement call.
This approach helps retain existing Wiz customers who use various cloud platforms.
Regulatory Hurdles
The acquisition faces significant regulatory scrutiny due to its size and Google’s ongoing antitrust battles. The companies expect the deal to close in 2026, pending reviews.
Evelyn Mitchell-Wolf, an analyst at eMarketer, expressed doubts about smooth approval: “Given its price tag—and the fact that Google’s already been found guilty of anticompetitive conduct in the search market—the acquisition will attract too much scrutiny to go through completely unimpeded.”
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The People Behind Wiz
Wiz’s four co-founders—Assaf Rappaport, Yinon Costica, Ami Luttwak, and Roy Reznik—met at Talpiot, an elite Israeli military academy, and later served in Unit 8200, Israel’s equivalent to the NSA.
This isn’t their first successful exit. In 2015, Microsoft acquired their previous startup, Adallom, for $320 million.
“He can be extremely charming and personal and warm,” says Gili Raanan, founder of Israeli venture capital firm Cyberstarts and an early Wiz investor, describing Rappaport. “And he can be very decisive, data-driven, analytical, merciless. Those two sides exist.”
Interestingly, Google had previously courted Wiz with a $23 billion offer in July 2024, which Rappaport rejected.
Employee Impact
The deal includes an additional $1 billion in retention bonuses for Wiz employees who remain with Google, according to a source familiar with the agreement.
Rappaport views the acquisition as accelerating Wiz’s mission: “Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company.”
Market Implications
The cybersecurity sector may see further consolidation following this mega-deal. For Google, it represents a significant push to catch up with Microsoft, which has said it generates more than $20 billion in annual revenue from security, making it the world’s largest provider of cybersecurity software.
Google Cloud has previously acquired other security firms, including Mandiant for $5.4 billion and Siemplify for approximately $500 million in 2022.
The deal also fits into Alphabet’s broader strategy to diversify revenue beyond its core advertising business, which currently accounts for about three-quarters of total revenue.
As companies increasingly shift operations to cloud environments and face growing security threats, this acquisition positions Google Cloud to capture more of the expanding cloud security market.
Frequently Asked Questions
What exactly is Wiz and why did Google pay $32 billion for it? +
Wiz is a cloud security platform that helps organizations protect their data across multiple cloud environments (AWS, Azure, Google Cloud, etc.). Founded in 2020, it experienced rapid growth to $350 million in annual recurring revenue by 2024, with projections to reach $1 billion this year. Google paid $32 billion because Wiz’s technology helps address critical security gaps in cloud computing, and the acquisition strengthens Google Cloud’s competitive position against AWS and Microsoft Azure.
Will Wiz still work with other cloud providers like AWS and Microsoft Azure after the acquisition? +
Yes, Google Cloud CEO Thomas Kurian explicitly stated that Wiz will maintain its multicloud capabilities and “continue working with other cloud providers including Microsoft, Amazon and Oracle.” This strategy helps retain Wiz’s existing customers who use various cloud platforms and may also help address potential regulatory concerns about competition.
Who founded Wiz and what’s their background? +
Wiz was founded by four friends—Assaf Rappaport (CEO), Yinon Costica, Ami Luttwak, and Roy Reznik. They met at Talpiot (an elite Israeli military academy) and served in Unit 8200 (Israel’s equivalent to the NSA). Before Wiz, they founded another cybersecurity company called Adallom, which Microsoft acquired for $320 million in 2015. They worked at Microsoft for five years before leaving to start Wiz.
Is this acquisition likely to face regulatory challenges? +
Yes, the acquisition will face significant regulatory scrutiny. Google is already involved in two separate antitrust battles with the U.S. Justice Department. The deal’s size ($32 billion) and Google’s market position make regulatory review inevitable. Analysts like Evelyn Mitchell-Wolf from eMarketer have expressed doubts that the deal will proceed “completely unimpeded.” The companies expect the acquisition to close in 2026.
How does this compare to Google’s other acquisitions? +
This is Google’s largest acquisition ever, significantly exceeding its previous record purchase of Motorola Mobility for $12.5 billion in 2011. In the cybersecurity space specifically, Google Cloud previously acquired Mandiant for $5.4 billion and Siemplify for approximately $500 million in 2022.
What happens to Wiz employees after the acquisition? +
The deal includes an additional $1 billion in retention bonuses for Wiz employees who stay with Google, according to a person familiar with the agreement. The specific time period for these retention bonuses wasn’t specified. Wiz will be integrated into Google Cloud, though the exact organizational structure hasn’t been publicly detailed.
