Google bets $32 billion on Isreal's cybersecurity unicorn Wiz

Google has spent years trying to make Google Cloud a real competitor to AWS and Microsoft Azure. It’s made flashy AI announcements, rolled out new enterprise tools, and in 2022, the tech giant acquired $5.4 billion on cybersecurity firm Mandiant.

But in the cloud wars, security is the name of the game. So now, Google’s making its biggest move yet by acquiring Wiz, a cloud security startup for a whopping $32 billion.

Now, keep in mind this wasn’t Google’s first attempt. Back in 2024, it tried to buy Wiz for $23 billion, but the startup turned it down, betting on an IPO instead. And honestly, it wasn’t a bad bet—Wiz has been on fire. In just five years, it’s built a client list that includes Salesforce, BMW, and Slack while racking up $1 billion in projected annual recurring revenue (ARR) for 2025.

While we're not sure what's changed since 2024, it seems a $32 billion all-cash offer might have been hard to turn down. The deal, subject to 'closing adjustments' will be Google’s biggest acquisition ever, surpassing its $12.5 billion Motorola deal in 2012.

Beyond the price tag, Wiz is a strategic fit, securing applications across AWS, Azure, Google Cloud, and Oracle Cloud—making it a powerful tool as Google tries to close the gap with its biggest cloud rivals.

Still, this move wasn't without risk. Google is already facing two major antitrust lawsuits in the U.S., and analysts have warned that spending billions to dominate cloud security could invite more regulatory scrutiny. Perhaps anticipating this, Google has confirmed that Wiz will remain a multicloud platform, meaning customers won’t be forced to migrate to Google Cloud—a move likely aimed at easing scrutiny.

Again, dropping $32 billion is one thing—turning it into an actual competitive advantage is another. But I guess time will tell if Wiz is the missing piece of the puzzle in Google's aim for cloud dominance.