Google Cloud and Palo Alto Networks sign security deal approaching $10 billion

Google Cloud, the cloud computing division of Alphabet, and cybersecurity firm Palo Alto Networks announced an expanded strategic partnership on Friday that a source familiar with the matter described as Google Cloud’s largest security services deal to date.

Under the agreement, Palo Alto Networks has committed to spending a sum approaching $10 billion with Google Cloud over several years, according to the source. While executives from both companies declined to confirm the exact value, part of the investment will support the migration of Palo Alto’s existing products to Google Cloud’s platform, with a significant portion directed toward developing new AI-powered security services.

“AI has created a tremendous amount of demand for security,” said Matt Renner, Chief Revenue Officer at Google Cloud.

Palo Alto Networks President BJ Jenkins noted that while artificial intelligence has already transformed areas such as software development, cybersecurity is still in an early phase of adaptation. At the same time, generative AI tools are increasingly being used by cybercriminals, intensifying the need for advanced defenses.

Both companies have significantly increased their investments in cybersecurity as enterprises accelerate the adoption of AI technologies. Google is currently awaiting regulatory approval for its $32 billion acquisition of cybersecurity firm Wiz, while Palo Alto Networks launched AI-driven products in October and recently announced plans to acquire Chronosphere for $3.35 billion.

The deal highlights Google Cloud’s growing competitive position as AI reshapes the cloud market, where it competes with Amazon Web Services and Microsoft Azure. Google and Palo Alto Networks have been strategic partners since 2018. Palo Alto CEO Nikesh Arora previously served as Google’s Chief Business Officer.