Google is making its biggest acquisition ever by buying Wiz, a cybersecurity company, for $32 billion. This move is part of Google’s plan to expand its cloud computing business. The deal comes as artificial intelligence (AI) is driving more demand for secure cloud services. Google is competing with Microsoft and Amazon in the cloud market, and adding Wiz could give it a stronger position. If regulators approve the deal, Wiz will become part of Google Cloud, a fast-growing division separate from Google’s main business of search and advertising.
Google Cloud Keeps Growing as AI Demands More Power
Google Cloud has been growing rapidly in recent years. The company made $26.3 billion from its cloud division in 2022. In 2023, that number jumped to $43.2 billion, a 64% increase. The rise of AI is one reason for this growth. AI needs powerful data centers, and cloud companies like Google, Microsoft, and Amazon are racing to meet the demand. Google believes buying Wiz will help improve security in cloud computing, making its services more attractive to businesses relying on AI technology.
Wiz Started Small but Quickly Became a Big Cybersecurity Player
Wiz is a young company with big ambitions. It was founded in 2020 by four friends who met in the Israeli army. Today, Wiz is based in New York and is one of the fastest-growing cybersecurity companies in the world. It makes security tools that protect data stored in cloud systems. The company is expected to make $1 billion in revenue this year. With Google’s resources, Wiz hopes to expand even faster and bring stronger security to businesses using cloud computing and AI.
Google CEO Predicts Better Security and Lower Costs With Wiz
Google CEO Sundar Pichai believes that adding Wiz to Google Cloud will improve security while keeping costs low. His statement may be aimed at reassuring both regulators and customers. Government officials will closely examine the deal to see if it affects competition in the cloud and cybersecurity industries. Google has been trying to buy Wiz for a while. Last year, it offered $23 billion, but Wiz rejected the deal. Instead, the company planned to go public. However, unstable stock market conditions changed its plans. Now, Wiz sees joining Google as the best way to grow and innovate.
Google’s Competition With Microsoft and Amazon in Cloud Services
The cloud computing market is extremely competitive. Microsoft and Amazon have already invested heavily in cybersecurity to strengthen their cloud businesses. Google has struggled to keep up, but buying Wiz could help it close the gap. Some industry experts believe this deal is a major challenge to Google’s biggest rivals. They see it as a bold move to take a larger share of the cloud market and improve Google’s security offerings.
Google’s Past Acquisitions Include Both Wins and Losses
Google has made big purchases before, but not all of them have worked out. Its previous largest deal was the $12.5 billion acquisition of Motorola Mobility in 2012. That deal did not bring the success Google hoped for. However, some of Google’s other purchases have been very successful. In 2006, it bought YouTube for $1.76 billion, and today YouTube is a global giant. In 2008, Google acquired DoubleClick for $3.1 billion, strengthening its advertising business. More recently, in 2022, Google bought cybersecurity company Mandiant for $5.4 billion, boosting its cloud security services.
Google Faces Legal Challenges as Regulators Watch the Deal
Google is already dealing with multiple legal challenges. The U.S. government has accused Google of being a monopoly. A judge recently ruled that Google used unfair practices to dominate internet searches. Another case is focused on Google’s online advertising business. Regulators may even force Google to sell its Chrome web browser. The Wiz deal will also be carefully reviewed. Some officials want to limit the power of big tech companies. Google and Wiz believe they can get approval, but the process will take time.
Some Groups Oppose the Deal Over Big Tech Concerns
Not everyone is happy about Google’s plan to buy Wiz. Some watchdog groups want the government to stop the deal. They argue that Google is already too powerful and should not be allowed to control another major cybersecurity company. Emily Peterson-Cassin, a director at Demand Progress Education Fund, says the government needs to take action. She believes this deal is an example of a big company getting even bigger, which could harm competition in the industry.
The Deal Could Be Finalized by 2026 if Approved
Google and Wiz expect the deal to be completed in 2026 if regulators approve it. They must meet several conditions before the sale is final. Until then, both companies will continue operating separately. The cybersecurity industry is changing, and experts say more big deals could happen soon. Google’s purchase of Wiz is just one example of how the cloud and AI industries are evolving.
