Alphabet Inc. is reportedly in discussions to acquire cloud-security company Wiz Inc. for $33 billion, rekindling negotiations that were previously halted last summer. If finalized, this would mark Alphabet’s largest acquisition to date and bolster Google’s cloud business as it competes with industry leaders Microsoft and Amazon.
Google Cloud, which has recently turned profitable after years of losses, has seen its growth slow. The potential acquisition of Wiz could strengthen its position in the competitive cloud-computing market. However, sources familiar with the matter indicate that the terms of the deal are not yet finalized and discussions could still fall through. Wiz has declined to comment, while Alphabet has not responded to inquiries.
The talks represent a shift for Wiz, which previously rejected Alphabet’s $23 billion offer in July 2024 in favor of remaining independent and pursuing an IPO. At the time, concerns over regulatory scrutiny in the U.S. and Europe played a role in Wiz’s decision, as global regulators continue to examine the influence of major tech companies.
Wiz CEO Assaf Rappaport, who previously described Alphabet’s bid as “humbling,” had expressed a desire to grow the company into a standalone cybersecurity leader, competing with firms like CrowdStrike and Palo Alto Networks. Despite the renewed deal talks, regulatory scrutiny remains a potential obstacle, as Alphabet continues to face antitrust challenges, including allegations of monopolistic practices in online search and digital advertising.
However, Google’s position as the third-largest cloud provider behind Microsoft and Amazon may help it argue against concerns about market concentration.
Founded by Israeli entrepreneurs and headquartered in New York, Wiz has attracted investments from Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts. The company was valued at $12 billion in a funding round last year.
The renewed negotiations were first reported by the Wall Street Journal.
