Google Cloud deepens cooperation with Palo Alto Networks, signing nearly $10 billion AI security deal

Wallstreetcn
2025.12.19 17:23
portai
I'm PortAI, I can summarize articles.

Google Cloud has signed a multi-year partnership agreement worth nearly $10 billion with cybersecurity company Palo Alto Networks, becoming Google Cloud's largest security service order to date. The collaboration will focus on the development of AI-driven security services to address new cyber threats posed by generative AI. This partnership not only strengthens Google Cloud's competitive advantage in AI cloud computing relative to Amazon and Microsoft but also provides crucial support for Palo Alto in the rapidly growing security AI market

Google Cloud and cybersecurity company Palo Alto Networks have expanded their strategic partnership by signing a multi-year contract worth nearly $10 billion, making it the largest security services deal for Google Cloud to date.

On December 19, Reuters reported, citing informed sources, that the contract includes Palo Alto Networks' commitment to pay "close to $10 billion" to Google Cloud over the next few years. The two parties will focus on joint development around AI-driven security services.

Executives from both sides pointed out that as generative AI tools are used to launch cyberattacks, the demand for AI-driven security solutions among enterprises has significantly increased. This collaboration not only further strengthens Google Cloud's advantage over Amazon and Microsoft in the cloud computing competition reshaped by AI but also provides critical technical support for Palo Alto Networks in the rapidly expanding AI security market.

Cooperation Details and Use of Funds

According to informed sources, the nearly $10 billion contract will be executed in phases. Although executives from both sides did not disclose specific amounts, Palo Alto President BJ Jenkins told Reuters that part of the funds will be used to migrate the company's existing services to the Google Cloud platform, while most will be invested in developing new AI-based security services.

Google Cloud Chief Revenue Officer Matt Renner stated, "AI has created a huge demand for security services." Jenkins compared the current situation to the early days of cloud computing: "This is similar to when cloud computing first emerged, with new security threats that people had never imagined before."

AI Reshaping the Cybersecurity Landscape

Cyberattacks are increasingly leveraging generative AI tools, which are also key technologies used by security service providers to strengthen defenses. Jenkins noted that while AI has fundamentally transformed business functions such as software development, the application of AI in cybersecurity is still in its early stages.

To address the growing AI security demands of enterprises, both Google and Palo Alto Networks are continuously increasing their investments in this field. Google’s $32 billion acquisition of security company Wiz is awaiting regulatory approval, while Palo Alto Networks launched AI-driven security services in October and announced plans to acquire software company Chronosphere for $3.35 billion last month.

History of Strategic Cooperation and Competitive Advantages

The two companies have established a strategic partnership since 2018. Notably, Palo Alto CEO Nikesh Arora was a former Google executive, serving as Chief Business Officer until 2014.

Google Cloud Chief Revenue Officer Matt Renner stated that this new collaboration highlights Google Cloud's differentiated advantages in the AI-driven competitive landscape compared to other large-scale cloud service providers like Amazon and Microsoft. This marks a significant breakthrough for Google Cloud in the enterprise-level AI security services market

Source: Wallstreetcn The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.