Google is reportedly looking to further strengthen its cybersecurity capabilities and services as it poses to acquire tech startup Wiz for $23 billion, according to The Wall Street Journal.
People familiar with the matter claimed that Google's parent company Alphabet is currently discussing with Wiz to expand its cloud computing services.
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Wiz was among the Silicon Valley startups that rose to prominence following the AI boom in 2020 and 2021 as more companies sought better cyber defenses for their prized AI models and data centers.
If the deal passes anti-trust regulators, the acquisition will be the biggest purchase Google has made since it acquired Mandiant, another cybersecurity firm, for $5.4 billion in 2022.
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Google Plays Catch-Up with Microsoft, Amazon in Cybersecurity Capabilities
The planned acquisition of Wiz is currently being seen as part of Google's recent efforts to keep up with the competition as Silicon Valley continues to hype up generative AIs.
Unlike Google's conservative acquisitions, Microsoft and Amazon have been securing multiple major deals over the past years as both tech giants ramp up AI-integrated services to customers and business operations.
Microsoft, in particular, has acquired several cybersecurity start-ups like RiskIQ, Miburo, ReFirm Labs, and Adallom since 2021 for cyber threat analysis and research.
Why are Tech Giants Acquiring Many Cybersecurity Firms?
Tech giants and much of Silicon Valley have been acquiring or reserving services of cybersecurity startups not only to protect their AI models but also to defend against the surge of cyberattacks in the industry.
Major tech companies like Microsoft, Meta, and Google have seen more data breach attempts in the past months as threat actors try to steal vital customer data.
It is worth noting that aside from individuals and businesses, many tech giants also offer their services to government agencies globally, posing a national security threat if these services were ever breached.
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