Google Cloud, the cloud computing arm of Alphabet, has signed an expanded partnership with Palo Alto Networks that could be worth nearly $10 billion.
A source familiar with the agreement told Reuters it represents Google Cloud’s largest security services deal to date.
The contract includes a multi-year commitment from Palo Alto to spend a sum approaching $10 billion on Google Cloud services.
Executives from both companies declined to confirm the exact financial terms.
AI-Driven Security Becomes Core to the Partnership
Part of the spending will support migrating Palo Alto’s existing products to the Google Cloud platform.
However, a significant share will fund new AI-powered security services, according to Palo Alto president BJ Jenkins.
Google Cloud chief revenue officer Matt Renner said AI has sharply increased enterprise demand for advanced cybersecurity.
While AI has already transformed areas like software development, cybersecurity remains in an early stage of disruption.
Jenkins compared the moment to the early days of cloud computing, when new threats emerged unexpectedly.
At the same time, cybercriminals increasingly use generative AI to launch more sophisticated attacks.
Both companies have ramped up security investments as enterprises accelerate AI adoption.
Google is awaiting regulatory approval for its planned $32 billion acquisition of security firm Wiz.
Meanwhile, Palo Alto launched AI-focused security products in October.
The company also announced plans to acquire software firm Chronosphere for $3.35 billion last month.
Renner said the new deal highlights Google Cloud’s strategic position as AI reshapes competition with hyperscalers like Amazon and Microsoft.
Google Cloud and Palo Alto Networks have partnered strategically since 2018.
Their ties run deep, as Palo Alto CEO Nikesh Arora previously served as Google’s chief business officer until 2014.
