Alphabet will buy Wiz for $32 billion in its largest deal to strengthen cloud security

Alphabet announced Tuesday that it would buy Wiz for approximately $32 billion in its largest transaction ever, as Google’s parent company doubles down on its cybersecurity bet to get an advantage in the cloud computing fight against Amazon.com and Microsoft.

The cash purchase comes after Wiz turned down a $23 billion bid from Alphabet last year due to concerns about antitrust approvals and the company’s aim on an IPO.

The acquisition of Wiz will help Google strengthen its cloud business by providing AI-powered cybersecurity solutions that organizations can employ to minimize crucial risks, allowing it to compete more effectively in a field that is benefiting from the emergence of generative AI services like ChatGPT.

Wiz, one of the fastest-growing software businesses, was valued at $12 billion during a funding round last May. It works with cloud providers including Amazon Web Services, Microsoft Azure, and Google Cloud, and its clientele include Morgan Stanley, BMW, and luxury giant LVMH.