Would You like a feature Interview?
All Interviews are 100% FREE of Charge
Google may be preparing to spend a record amount to acquire a four-year-old startup that could turn its AI empire into a fortress.
on sunday, The Wall Street Journal The search giant is reportedly considering acquiring Wiz, a New York-based startup founded in 2020 by former members of the Israeli military intelligence unit, Unit 8200.
The deal could be worth as much as $23 billion and marks a special moment for the Wiz.
The young company specializes in cybersecurity for cloud computing, not the AI-based model that tech startups such as OpenAI and Anthropic have touted to secure billions of dollars in investment.
Wiz has worked with companies such as Morgan Stanley, LVMH, Shell, Mars and Blackstone to help secure the operations they build and run in the cloud.
The acquisition gives Wizz a chance to achieve a rare feat in the AI-generated era of technology: expand its valuation as a company that doesn’t always shout about AI. The company announced a $1 billion funding round in May, bringing its valuation to $12 billion.makes “cloud security” a top priority.
Assaf Rappaport is CEO of Wiz. Harry Murphy/Getty Images
But for Google, Wiz’s cybersecurity services promise to bolster its cloud operations at a time when AI has made them essential.
While Google has lagged behind rivals like Amazon and Microsoft in the cloud space, it’s winning more business amid a generative AI boom as enterprise customers seek services that help them build, host and maintain their AI services and data. That puts Google under greater responsibility than ever for the work of its customers as they move forward in the AI ​​field.
In the cloud
For example, in the first three months of this year, Google’s cloud division’s revenue reached $9.6 billion, up 28% year over year, and with generative AI showing no signs of going away, Google can expect this trend to continue.
Thomas Kurian is CEO of Google Cloud. Google
Still, to maintain its upward trajectory, Google needs to show customers that its cloud services are as secure as possible.The Wizz deal “will clearly strengthen Google’s cloud services and value proposition to the enterprise,” Wedbush analysts including Dan Ives said in a research note.
The WSJ said the talks are at an “advanced” stage, but details have yet to be revealed, including how Wiz will be integrated into Google after the acquisition and the extent to which Wiz’s cybersecurity services will run on AI applications hosted on Google Cloud. Google did not immediately respond to Business Insider’s request for comment.
“Monopoly power”
Any potential deal could face intense regulatory scrutiny: FTC antitrust concerns have weighed heavily on tech deal activity in recent years, causing big tech companies in particular to tread cautiously.
on sunday, Senator Richard Blumenthal pointed out X. He said the report on the impending transaction would be “a textbook antitrust transaction” and an example of “how to infuriate enforcers and evade the law and logic in the pursuit of monopoly power.”
Still, Google’s decision to move forward shows how important the company thinks cybersecurity is to the future of its AI cloud.