Google Cloud and Palo Alto launch $10 billion AI deal

In Short:
– Google Cloud and Palo Alto Networks have partnered on a nearly $10 billion security services deal.
– The multiyear contract will integrate Palo Alto’s security platform with Google Cloud’s AI capabilities.

Alphabet’s Google Cloud and Palo Alto Networks have announced a partnership valued at nearly $10 billion. This agreement marks the largest security services deal for Google Cloud as enterprises increase efforts to protect AI infrastructure amid rising cyber threats.The multiyear contract involves Palo Alto moving key internal workloads to Google Cloud and creating new AI-driven security solutions. While executives refrained from commenting on financial specifics, the deal enhances a relationship formed in 2018.

Research from Palo Alto’s December 2025 State of Cloud Report revealed that 99% of surveyed companies faced at least one attack on their AI infrastructure in the past year. The collaboration aims to integrate Palo Alto’s Prisma AIRS security platform with Google Cloud’s AI capabilities, including Vertex AI and Agent Engine, to enhance protection for AI workloads.

AI Security Demand

Matt Renner, Google Cloud’s chief revenue officer, indicated that the surge in AI has created significant security demand. BJ Jenkins, president at Palo Alto, likened the current threat environment to those seen during the early growth of cloud computing.

The investment will see Palo Alto’s products migrated to Google’s platform, while also funding new AI-focused services. The companies have launched 75 joint integrations, achieving $2 billion in sales via the Google Cloud Marketplace.

The agreement also highlights broader cybersecurity strategies from both firms. Google is pursuing a $32 billion acquisition of Wiz, awaiting regulatory approval. Meanwhile, Palo Alto has plans to acquire observability platform Chronosphere for $3.35 billion.

Renner noted that this collaboration positions Google Cloud advantageously as AI continues to reshape the competitive landscape against rivals like Amazon and Microsoft. Furthermore, Palo Alto CEO Nikesh Arora’s previous experience at Google enhances the partnership’s potential.