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Alphabet Set to Acquire Wiz for $32 Billion in Major Move to Strengthen Cloud Security

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Alphabet has announced its decision to acquire the fast-growing cybersecurity startup, Wiz, for approximately $32 billion, marking the company’s largest-ever acquisition. This move is part of Alphabet’s broader strategy to bolster its cloud-computing division and enhance its security offerings as it looks to compete more aggressively with industry leaders Amazon and Microsoft. With cyber threats becoming an increasing concern for businesses worldwide, the acquisition will enable Google Cloud to better serve its clients by providing advanced security solutions designed to mitigate critical risks.

The deal underscores Alphabet’s commitment to strengthening its position in the cloud market, where security is becoming a central focus for organizations. Wiz, which specializes in cloud-native security and risk management solutions, will be integrated into Google Cloud, aligning with Alphabet’s broader goal of enhancing its enterprise offerings. The acquisition is expected to accelerate Google Cloud’s cybersecurity capabilities, helping to protect its customers from evolving threats in an increasingly digital landscape.

While the price tag for Wiz is substantial, Alphabet seems confident the deal will pass regulatory scrutiny, despite the potential for increased government oversight on large tech acquisitions. The buyout is expected to come with a hefty breakup fee, signaling that both parties are committed to ensuring the deal progresses smoothly. Alphabet’s stock saw a slight dip following the announcement, reflecting concerns about its rising costs, especially in artificial intelligence (AI) investments. Nonetheless, the acquisition highlights Alphabet’s strategic intent to build on its cloud business at a time when tech giants are recalibrating in response to competition from emerging players like China’s DeepSeek.

The acquisition price is notably higher than the initial offer of $23 billion made by Alphabet last year, which Wiz had rejected. The startup was valued at around $12 billion in a private funding round in May 2024 and generated more than $500 million in annual recurring revenue at the time. Despite the initial rejection, sources report that the two companies maintained communication, with Google Cloud CEO Thomas Kurian persistently pursuing the acquisition. This strategic move signals that Alphabet is doubling down on its cloud and cybersecurity goals, aiming to solidify its position in a highly competitive market.

IBM Surpasses Profit Estimates in Q4 as AI and Software Drive Growth

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IBM (IBM.N) exceeded fourth-quarter profit forecasts on Wednesday, bolstered by strong demand in its software division as businesses increased IT spending. This growth, driven by a shift toward cloud infrastructure and the adoption of generative artificial intelligence technology, sent IBM’s shares soaring by approximately 10% in after-hours trading.

The company’s software segment saw its largest revenue increase in five years, benefiting from the heightened focus on AI-driven cloud solutions. Analyst Matt Swanson of RBC Capital Markets noted that increased software growth is associated with higher profit margins.

IBM also raised its outlook for fiscal 2025, forecasting revenue growth of at least 5% at constant currency, compared to 3% growth in 2024. This projection indicates confidence in IBM’s AI and cloud strategy, according to Michael Schulman, chief investment officer at Running Point Capital.

IBM’s “AI Book of Business” — a combination of bookings and actual sales across various AI products — reached over $5 billion, a $2 billion increase from the third quarter. The company made its “Granite” AI models open-source in May, positioning itself differently from competitors like Microsoft (MSFT.O), which charge for access to their AI models. This approach mirrors the strategy of DeepSeek, a Chinese startup that launched a free AI assistant, raising concerns over U.S. tech dominance.

Despite this, IBM’s Chief Financial Officer, James Kavanaugh, did not provide details on whether IBM intends to offer DeepSeek’s models on its Watsonx platform, which helps users deploy chatbots and other AI tools.

On the downside, IBM’s consulting division, which dominates its AI business, experienced a 2% decline in revenue, totaling $5.2 billion for the quarter. The focus on long-term AI integration consulting projects has yet to reflect in revenue figures. Overall, IBM’s total revenue remained flat at $17.55 billion for the quarter, aligning with analyst expectations. The company reported adjusted per-share earnings of $3.92, surpassing the forecast of $3.75.

 

Digital Edge Raises Over $1.6 Billion to Fuel Expansion Across Asia

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Singapore-based data centre company Digital Edge announced on Monday that it had successfully raised over $1.6 billion in new capital through a mix of equity and debt financing. This funding is intended to drive the company’s growth as it expands to meet the surging demand for cloud and artificial intelligence services across Asia.

The capital raised includes approximately $640 million in equity investment from both existing and new investors, as well as $1 billion in debt financing. Digital Edge is a portfolio company of Stonepeak, a New York-based investment firm with a focus on infrastructure and real assets.

Since its establishment in 2020, Digital Edge has rapidly expanded its footprint, currently operating 21 data centres with more than 500 megawatts of capacity in service or under construction. The company is also developing an additional 300 megawatts of capacity for future use across multiple Asian countries, including Japan, Korea, India, Malaysia, Indonesia, and the Philippines.