Google is reportedly in talks to acquire Wiz, a cybersecurity startup founded in 2020 by former members of the Israeli military's Unit 8200 intelligence unit. The potential deal, valued at $23 billion, could have significant implications for Google's cloud operations and AI empire.
Wiz specializes in cybersecurity for cloud computing, working with major companies such as Morgan Stanley, LVMH, and Shell to secure their cloud operations. The company, which recently raised $1 billion and was valued at $12 billion, focuses on "cloud security" rather than AI foundation models.
For Google, acquiring Wiz could help bolster its cloud offerings at a time when the demand for secure AI services is on the rise. While Google's cloud unit has seen a 28% year-on-year revenue increase to $9.6 billion in the first quarter of the year, the company still lags behind rivals like Amazon and Microsoft in the cloud market.
Despite the potential benefits of the acquisition, the deal may face scrutiny from regulators due to antitrust concerns. Senator Richard Blumenthal has already raised concerns about the deal potentially giving Google "monopoly power" in the tech sector.
As talks between Google and Wiz continue, the tech giant will need to consider how to integrate Wiz's cybersecurity services into its cloud operations and AI applications. The decision to move forward with the acquisition will not only impact Google's position in the cloud market but also demonstrate the company's commitment to cybersecurity in the AI-cloud future.