Alphabet, Google's parent company, has announced its largest-ever acquisition, purchasing Israeli cybersecurity startup Wiz for $32 billion. The deal expands Google Cloud's security capabilities as it competes with Amazon Web Services (AWS) and Microsoft Azure, while also raising concerns about Google's growing entanglement with "Israel's" military-tech ecosystem.

About Wiz

Founded in 2020 by former Microsoft cloud security executives, Wiz specializes in vulnerability detection and mitigation for AWS, Microsoft Azure, Google Cloud, and Kubernetes. Its clients include Morgan Stanley, BMW, and LVMH.

The company was valued at $12 billion in May 2024, with $500 million in annual recurring revenue. Google initially offered $23 billion in 2023, but Wiz rejected the bid before the two parties reached the final $32 billion agreement.

Wiz has faced legal and security challenges, including a 2023 patent infringement lawsuit from competitor Orca Security and a 2025 data exposure incident involving Chinese AI firm DeepSeek.

Google's Cloud Security Strategy

The acquisition follows increased demand for cloud security solutions, especially after the 2024 CrowdStrike outage disrupted global businesses.

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Google Cloud CEO Thomas Kurian has been pursuing Wiz to expand enterprise security offerings. D.A. Davidson analyst Gil Luria noted, "For Google to be able to compete with Microsoft Azure for enterprise customers, it needs to be able to offer a deeper suite of services, including security software."

Regulatory and Market Considerations

The acquisition will undergo antitrust scrutiny, as Donald Trump's administration continues to monitor Big Tech mergers. Google has stated that Wiz will remain available to AWS and Microsoft Azure, a move seen as an attempt to mitigate competition concerns.

Elise Phillips, policy counsel at Public Knowledge, commented, "Generally speaking, Google is not a leader in the cloud business, and Wiz will still be available on all other cloud services. Any type of exclusivity agreement between the two of them down the line would give me cause for concern."

Alphabet's stock fell nearly 3% following the announcement, adding to a 13% decline this year, largely due to AI investments and competition from China's DeepSeek. Investors have also expressed concerns about Alphabet's merger and acquisition (M&A) track record. Aptus Capital's Dave Wagner stated, "There will likely be a microscope on the deal by investors, given Google's lackluster historical track record with its capital allocation plan, specifically around M&A."

Google's Expanding Role in Israeli Military-Tech Infrastructure

The acquisition also brings renewed attention to Google's deepening involvement in Israeli military operations, particularly through its cloud computing contracts.

• Project Nimbus, a $1.2 billion cloud and AI contract with Google and Amazon, enables the Israeli government, including the military, to use advanced AI and cloud services without restrictions.
• Leaked documents obtained by TIME revealed that Google was negotiating to expand its AI services for "Israel's" Ministry of Security as its assault on Gaza continued.
• The Israeli army actively uses cloud services from AWS, Google Cloud, and Microsoft Azure for military targeting systems, mass surveillance, and drone operations in Gaza, according to a report by +972 Magazine and Local Call.

Despite Google's claims that Nimbus is for civilian government use, an audio recording of Col. Racheli Dembinsky, head of Israel's Center of Computing and Information Systems Unit, confirmed that Amazon, Google, and Microsoft's cloud services were used as part of Israel's military cloud-based targeting systems.

Read more: Israeli military using cloud services from tech giants in war on Gaza

Wiz's Ties to Israeli Military Cyber Programs

The deal also highlights "Israel's" cybersecurity sector, where many firms have benefitted from state-backed initiatives and military intelligence programs.

• Wiz's founders previously served in "Israel's" cyber intelligence units, a common background for
• Israeli tech entrepreneurs who develop technologies that later integrate into military and security applications.
• Other Israeli cybersecurity firms acquired by US tech giants include Siemplify (Google, 2022) and Own (Salesforce, 2024).

Wiz's leadership previously sold Adallom to Microsoft in 2015, another company with roots in Israeli intelligence operations.

Read more: Leaked files reveal Microsoft's role in 'Israel's' military operations

With Google Cloud generating over $40 billion in revenue in 2024, this acquisition is expected to strengthen its enterprise security offerings. The deal is expected to close in 2026, pending regulatory approval.