In a move that marks the largest acquisition in its history, Google’s parent company Alphabet has officially purchased cloud security startup Wiz for $32 billion in an all-cash deal. This acquisition, which has been in the works for nearly a year, solidifies Google’s ambitions to expand its presence in enterprise cloud security, a space where it continues to compete with giants like AWS and Microsoft Azure.

While initial reports suggested a $33 billion valuation, this figure includes an additional $1 billion in retention bonuses aimed at securing Wiz’s talent pool of 1,700 employees, averaging over $588,000 per employee. Naturally, actual payouts will vary depending on individual roles and seniority.

Wiz to Operate Independently Under Google Cloud

Despite the acquisition, Wiz will continue to function as an independent platform with a multi-cloud approach, meaning it will support cloud environments beyond just Google Cloud Platform (GCP). This is a crucial element in the deal, as Wiz has built its reputation on being cloud-agnostic, providing security solutions for AWS, Azure, and GCP alike.

Google plans to expand Wiz’s operations, bringing in additional talent and possibly making further acquisitions to strengthen its cybersecurity infrastructure. Wiz itself has been actively exploring acquisition opportunities over the past year, making this deal even more strategic.

At the time of the acquisition, Wiz had reached $700 million in annual recurring revenue (ARR) and was on track to hit $1 billion within the next year. According to sources, the arrangement between Google and Wiz will resemble Microsoft’s acquisition of LinkedIn, where Wiz maintains a degree of autonomy while still benefiting from Google’s extensive resources.

However, history has shown that such arrangements often lead to deeper integrations over time. LinkedIn, for example, has increasingly relied on Microsoft’s cloud and AI services—a pattern that could repeat with Wiz’s eventual alignment with Google Cloud’s security offerings.

Regulatory Approval & Expected Closing in 2026

The deal is subject to regulatory approval, and Google anticipates closing it in 2026. Given recent scrutiny over big tech acquisitions, some analysts speculate that the new U.S. administration may take a more favorable stance toward major deals, particularly in cybersecurity, which is increasingly viewed as a national security priority.

This isn’t the first time Google has attempted to acquire Wiz. In 2024, Alphabet offered $23 billion, but negotiations stalled over concerns about antitrust regulations, Wiz’s autonomy within Google Cloud, and pricing disagreements. At that time, Wiz was valued at $12 billion following a $1 billion funding round.

Since then, the company has grown significantly, with its valuation climbing to $16 billion in a secondary sale before this acquisition doubled that valuation.

Google’s Cloud Security Push & The Role of AI

Google’s interest in Wiz stems from two key strategic goals:
1️⃣ Strengthening its position in enterprise cloud security
2️⃣ Enhancing its overall cybersecurity offerings as AI adoption increases

Google Cloud CEO Thomas Kurian, who spearheaded this acquisition, emphasized the growing importance of cybersecurity in an AI-driven landscape:

“Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry. Enabling more companies to prevent cyber attacks, including in very complex business software environments, will help organizations minimize the cost, disruption, and hassle caused by cybersecurity incidents.”

The rapid expansion of AI-driven applications has significantly altered the security landscape, increasing the complexity of cyber threats. Google sees Wiz as a key player in mitigating these risks, especially as cloud adoption continues to rise across industries.

Additionally, this acquisition complements Google’s existing security investments, including its 2022 acquisition of Mandiant, a cybersecurity firm known for its threat intelligence and incident response solutions.

What This Means for Wiz’s Investors & the Cloud Security Market

For Wiz’s investors, this acquisition is an enormous financial windfall. Backed by major firms like Sequoia, Cyberstarts, Index Ventures, Salesforce, Thrive Capital, and Greenoaks, Wiz’s growth trajectory has been nothing short of remarkable.

Rumors suggested that Wiz had been in talks to raise funding at an even higher valuation, but this acquisition provides a faster and more lucrative exit for its backers.

With this deal, Google is not just acquiring a security platform—it’s integrating a dominant player in the cloud security space. This move positions Google Cloud as a more formidable competitor to AWS and Microsoft Azure, particularly in enterprise security offerings.

The Future of Wiz Under Google

Despite its autonomy, Wiz’s alignment with Google Cloud is inevitable. Over time, we could see deeper integration between Wiz’s security tools and Google’s AI-driven security solutions, making it an essential part of the Google Cloud ecosystem.

For the broader industry, this acquisition signals more consolidation in the cybersecurity space, as major cloud providers race to bolster their security infrastructure in response to growing cyber threats.

As this story continues to develop, we’ll be watching closely to see how Wiz evolves under Google’s leadership. Will it remain truly independent, or will it become deeply integrated into Google Cloud’s ecosystem? Time will tell.

Stay tuned for updates as regulatory approvals progress and Google begins shaping Wiz’s future!