Why Google made a $32 billion bet on Wiz
Google’s latest acquisition is its most expensive yet — and perhaps its riskiest, too. On Tuesday, the search giant announced that it acquired the cloud security startup Wiz for $32 billion. It’s a major bet that Wiz can help beef up Google’s cloud business, which makes far less money than the offerings built by its biggest rivals. But to do that, Google faces real challenges integrating this expensive acquisition and dodging regulatory concerns around what’s certain to be a high-profile purchase.
Both Microsoft and Amazon have profited handsomely from the AI cloud gold rush, with their cloud services reporting revenues reaching $105.4 billion and $107.6 billion, respectively, during fiscal year 2024. Google, on the other hand, is a minor player in comparison; its cloud revenue surpassed just $43 billion in 2024. With the AI boom showing no signs of stopping, Google may have found a way to shrink the gap with its fellow tech titans, even if it has to spend billions of dollars to get there.
“Security is a fundamental priority for CEOs and government leaders around the world, but the landscape is changing,†Google CEO Sundar Pichai said during an investors call. “The …