Google parent Alphabet has reportedly revived discussions to acquire cloud-security company Wiz for $33bn after the talks failed to materialise in 2024.
The agreement could be potentially announced as early as Tuesday, 18 March, marking Alphabet’s most significant acquisition yet, reported Bloomberg, citing sources.
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This move could strengthen Google’s position in the cloud computing sector, enhancing its ability to compete with industry leaders Microsoft and Amazon.
According to sources, the terms of the deal have not been finalised and may change, with the possibility of discussions ending without agreement.
While representatives of Wiz, which was co-founded by Assaf Rappaport and is based in New York, declined to comment, Alphabet has not responded to requests for comment.
The acquisition talks resumed after Wiz rejected a $23bn offer from Alphabet in July 2024, opting to remain independent.
Concerns over a lengthy regulatory approval process initially deterred Wiz and its investors, given the scrutiny from US and European competition authorities.
Although the current US administration may provide a more favourable environment for deals, Alphabet’s offer could still face antitrust scrutiny.
Google has been dealing with several antitrust challenges, including accusations from the Department of Justice regarding its dominance in online search.
A federal judge ruled last year that Google maintained an illegal monopoly in search, and the company is facing another antitrust case over its digital advertising tools.
However, Google’s cloud business ranks third behind Microsoft and Amazon, potentially mitigating regulatory concerns about market concentration in the cloud sector.
Wiz counts Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts among its investors.
The company was valued at $12bn in a funding round in 2024.
In separate development, Google is set to collaborate with Taiwan’s MediaTek on the next version of its AI chips, Tensor Processing Units, slated for production next year, reported Reuters, citing The Information.
Despite this partnership, Google continues its association with Broadcom, the chip designer it has worked with on AI chips for several years.
Google also designs its own AI server chips, used internally and rented out to cloud customers.
This strategy reduces Google’s reliance on Nvidia, providing a competitive edge in the AI sector, as demand for Nvidia chips surges among rivals like Microsoft-backed OpenAI and Meta Platforms.
