Google announced Tuesday it will acquire cloud security platform Wiz for $32 billion in an all-cash deal. The acquisition brings Wiz into Google Cloud operations, aiming to boost customers' ability to use multiple cloud environments while providing comprehensive security solutions for the AI era, according to our sources.

The companies released a joint statement explaining that as artificial intelligence becomes more embedded in technology infrastructure, cybersecurity grows increasingly important in protecting against new risks and safeguarding national security.

This $32 billion transaction represents the largest acquisition ever attempted by Google or its parent company Alphabet. The deal will test President Donald Trump's stance on large corporate takeovers, following resistance to such consolidations during the Biden administration.

Google had previously pursued Wiz last summer, but the deal fell through when Wiz leadership chose to remain independent with plans for an initial public offering. CEO Assaf Rappaport explained this decision in a message to employees after the earlier negotiations ended.

Wiz, founded in 2020 by Israeli-born Rappaport and a team who previously sold a venture to Microsoft, is headquartered in New York with offices in three other U.S. cities and Tel Aviv. The company's service continuously scans organizations' code and cloud environments in real time to:

• Identify security vulnerabilities
• Prioritize critical risks based on actual impact
• Block active threats

Thomas Kurian, CEO of Google Cloud, stated that after the acquisition closes, Wiz will continue operating as a Google company while still providing services to competitors like Amazon Web Services and Microsoft Azure. This approach mirrors Google's handling of Mandiant, another cybersecurity firm acquired three years ago.

Wedbush analyst Dan Ives suggested this deal could trigger a wave of mergers and acquisitions across the tech landscape, particularly in cybersecurity. He noted that the departure of Lina Khan, the former FTC head who opposed tech industry consolidation, might open doors for more deals as cloud operators seek to secure their portfolios.

Google's $32 billion Wiz acquisition comes amid significant regulatory pressure on the company. The Justice Department continues to push for Google to sell its Chrome browser following a federal judge's ruling last year that the company illegally monopolized the search market. This browser divestiture requirement, originally proposed by the Biden administration, has been maintained in recent DOJ filings as a measure to prevent Google from controlling what officials describe as "a critical search access point."