$10 billion deal: Google Cloud teams up with Palo Alto's AI security service

Alphabet's cloud computing division and cybersecurity company Palo Alto Networks have announced an expanded partnership that, according to a Reuters source familiar with the situation, is "Google Cloud's biggest security services deal yet."

The companies' collaboration involves combining Google Cloud's cloud and AI capabilities with Palo Alto's Prisma AIRS AI-based security platform, according to a Palo Alto release. The contract, according to a Reuters interlocutor, involves Palo Alto's commitment to pay Google Cloud an amount "approaching $10 billion" over several years.

Managers of both companies declined to comment on the amount of the contract.

A portion of the funds will be used to migrate Palo Alto's existing services to Google's platform; another significant portion will be used to add new artificial intelligence-enabled services, Palo Alto President B.J. Jenkins told the agency. "Artificial intelligence has created a huge demand for security," Google Cloud Chief Revenue Officer Matt Renner said in turn.

The Palo Alto release states that the deal "will allow companies to deploy the most advanced AI solutions while protecting their intellectual property and data in the cloud."

While AI has completely changed some business functions, such as software development, others, such as cybersecurity, are still in their infancy, Reuters notes. "It's just like when cloud technology first started to evolve and new security threats emerged that no one ever imagined," Jenkins added.

This is not the first such deal for Alphabet. In March 2025, the Internet giant agreed to buy cybersecurity startup Wiz for a record amount in its history - $32 billion. The deal is now awaiting regulatory approval, according to Reuters.

The Palo Alto company launched AI-powered cybersecurity solutions in October and followed that up in November by announcing plans to acquire software company Chronosphere for $3.35 billion.

Until 2014, Palo Alto CEO Nikesh Arora had a long tenure at Google, serving as director of business development, Reuters recalls.

Alphabet's Class A and C shares added about 1% in trading on Dec. 19 after news of the expansion of Google Cloud and Palo Alto partnership, while Palo Alto rose 0.9%.

This article was AI-translated and verified by a human editor