Google Cloud has secured what is being described as its largest-ever security services agreement, announcing an expanded partnership with Palo Alto Networks. According to a source cited by Reuters, the multi-year deal is valued at nearly $10 billion, underscoring the growing convergence of cloud, AI, and cybersecurity.
Under the agreement, Palo Alto Networks will migrate a significant portion of its existing security platforms to Google Cloud while also co-developing new AI-driven security services. Palo Alto president BJ Jenkins said a substantial share of the investment will focus on innovation, reflecting how artificial intelligence is reshaping both cyber threats and defenses.
Google Cloud executives emphasized that AI adoption is driving unprecedented demand for advanced security. As generative AI tools are increasingly used by attackers, enterprises are seeking more intelligent, automated defenses—creating a new phase of cybersecurity evolution similar to the early days of cloud computing.
From a strategic perspective, the deal strengthens Google Cloud’s competitive positioning against hyperscaler rivals Amazon Web Services and Microsoft Azure, particularly in security-led cloud transformation. It also builds on a long-standing relationship between the two firms, who have been strategic partners since 2018. The collaboration carries added significance given Palo Alto CEO Nikesh Arora, a former senior Google executive.
The announcement comes amid aggressive security investments by both companies. Google’s pending $32 billion acquisition of Wiz and Palo Alto’s recent AI launches and acquisitions highlight a clear industry signal: AI-driven security is becoming foundational to enterprise cloud strategy.
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