Tech giant Alphabet has announced the acquisition of cybersecurity startup Wiz for $32 billion in cash, marking the largest deal in the company’s history. This acquisition aims to enhance Google Cloud’s security infrastructure and strengthen its competitive position against industry leaders such as Microsoft and Amazon.
Founded in 2020, Wiz specializes in AI-powered cloud security solutions and has experienced rapid growth. The company generated $350 million in revenue last year and is expected to reach an annual recurring revenue of $1 billion by 2026.
Alphabet’s purchase price is significantly higher than Wiz’s previous valuation of $12 billion, raising concerns among investors. Following the announcement, Alphabet’s stock dropped by more than 2%, reflecting skepticism over the company’s capital allocation strategy.
Regulatory scrutiny could pose challenges, as authorities are expected to review the deal’s impact on market competition. If approved, the acquisition will solidify Google’s position in cloud security and help diversify its revenue streams beyond advertising.