Alphabet to buy cybersecurity startup Wiz for $32B

Google owner Alphabet on Tuesday said it would buy cybersecurity startup Wiz for $32 billion. The all-cash deal is set to boost Alphabet's profile in the cloud computing market, a space currently led by Amazon and Microsoft. Once the transaction is closed, the company says Wiz will join Google Cloud.

The all-cash acquisition follows Wiz’s rejection of a $23 billion offer from Alphabet last year over antitrust concerns, and its aim to focus on an initial public offering, reported Reuters.

The report further noted that the deal is expected to boost the tech giant's cloud business by integrating AI-driven cybersecurity solutions. Meanwhile, Wiz's products will continue to be available across all major cloud platforms, and Alphabet expects the transaction to be finalised in 2026, pending regulatory approvals.

“Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers,” Google CEO Sundar Pichai said in a statement Tuesday, adding that Google Cloud and Wiz will “turbocharge improved cloud security and the ability to use multiple clouds” together.

Wiz, a four-year-old startup headquartered in New York, makes security tools designed to shield the information stored in remote data centres from intruders.

As of December 31, Google reported $23.47 billion in cash and cash equivalents, suggesting it may need to secure additional financing for the deal. The company, which has earmarked $75 billion in capital expenditure for 2025, primarily for AI investments, announced on Tuesday that its capital allocation plans remain unchanged.

Alphabet reported a 12% year-over-year increase in fourth-quarter revenue, reaching $96.5 billion, as growth in AI initiatives and cloud services bolstered its financial performance. Net income rose 28% to $26.5 billion, while earnings per share increased 31% to $2.15. Operating income grew 31% to $31 billion, with operating margins expanding five percentage points to 32%.

(With additional inputs from PTI)