Google, through its parent company Alphabet, acquired Wiz for $32 billion to strengthen its position in the cloud computing and cybersecurity markets.

Wiz enhances Google Cloud’s cybersecurity offerings. Founded in 2020, Wiz provides a cloud-native security platform that identifies and mitigates risks across multiple cloud environments, including AWS, Azure, and Google Cloud itself. With AI-driven threat detection and response capabilities, Wiz complements Google’s existing security portfolio, such as Mandiant (acquired in 2022 for $5.4 billion), and addresses the growing demand for robust cloud security as businesses increasingly adopt cloud infrastructure and face evolving threats amplified by AI.

Second, the acquisition positions Google Cloud to compete more effectively against industry leaders Amazon Web Services (AWS) and Microsoft Azure. Google has historically trailed in the cloud market, but Wiz’s technology and its multicloud compatibility—supporting 40% of Fortune 100 companies—give Google a competitive edge. This move targets enterprise customers who need comprehensive security solutions, an area where Microsoft and Amazon have been strong.

Third, it’s about speed and talent. Building a comparable solution in-house would take years, while Wiz, with its rapid growth (from $100 million to over $500 million in annual recurring revenue in under five years), offers proven technology and a skilled team of 1,700 employees. Google didn’t just buy a product; it bought a head start and expertise, especially from founders with a track record of selling Adallom to Microsoft in 2015.

Finally, the timing reflects market dynamics. After rejecting a $23 billion offer from Google in 2024 to pursue an IPO, Wiz reconsidered as the IPO market remained volatile. The $32 billion deal, finalized on March 18, 2025, signals Google’s willingness to invest heavily in a strategic asset despite regulatory scrutiny, betting on Wiz to drive Google Cloud’s growth in a $1 trillion market opportunity.

Google acquired Wiz to bolster its cloud security capabilities, close the gap with competitors, accelerate innovation, and capitalize on a fast-growing startup’s momentum—all critical steps to expand its footprint in the AI and cloud era.

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