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Dec 21, 2025
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Palo Alto Networks and Google Cloud Strike Multibillion-Dollar AI Security Deal
NewDecoded
4 min read
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Palo Alto Networks (NASDAQ: PANW) and Google Cloud have deepened their strategic partnership through a new multibillion-dollar agreement announced on December 19, 2025. A source familiar with the agreement told Reuters that Palo Alto Networks will commit to spending that approaches $10 billion over several years on Google Cloud services, marking Google Cloud's largest security deal to date. The expanded collaboration comes at a critical moment. 99% of organizations experienced at least one attack on their AI systems within the past year, according to Palo Alto Networks' State of Cloud Security Report 2025, which surveyed over 2,800 security executives across 10 countries. The partnership aims to embed comprehensive security directly into Google Cloud's AI infrastructure, protecting everything from development to deployment.
What's in the deal
The partnership delivers four core capabilities: end-to-end AI security from code to cloud using Palo Alto's Prisma AIRS platform, AI-driven VM-Series software firewalls with deep Google Cloud integrations, Prisma SASE secure access for remote users and branch offices running on Google's network, and pre-vetted unified security solutions that remove integration friction for customers. As part of the agreement, Palo Alto Networks will migrate key internal workloads to Google Cloud and will leverage Google's Vertex AI platform and Gemini LLMs to power its security copilots. The companies have already established a track record together, with more than 75 joint integrations and $2 billion in sales through the Google Cloud Marketplace.
"Every board is asking how to harness AI's power without exposing the business to new threats. This partnership answers that question," said BJ Jenkins, President of Palo Alto Networks.
Matt Renner, President and Chief Revenue Officer of Google Cloud, emphasized that the expansion ensures joint customers "have access to the right solutions to secure their most critical AI infrastructure and develop new AI agents with security built in from the start." The deal positions both companies to capitalize on the intersection of two massive enterprise technology shifts: cloud migration and AI adoption. 75% of organizations stated that they are running AI in their production environments today, creating an unprecedented expansion of the cloud attack surface that traditional security approaches struggle to address.
The personal connection
Palo Alto CEO Nikesh Arora spent years at Google, serving as chief business officer until 2014, a relationship that helped lay the groundwork for this expanded partnership.
This partnership represents more than a massive commercial deal. It signals a fundamental shift in how cloud providers and security vendors are approaching AI security. Rather than treating security as an afterthought or add-on, the integration of Palo Alto's security stack directly into Google Cloud's infrastructure suggests the industry is moving toward "security by design" for AI workloads. The nearly $10 billion commitment also positions Google Cloud more competitively against AWS and Microsoft Azure in the enterprise AI race, where security concerns have become a major barrier to adoption. For Palo Alto, it's a platform play that deepens vendor lock-in while potentially limiting opportunities for competitors. The timing is strategic too: with Google pursuing its $32 billion acquisition of security firm Wiz and Palo Alto recently acquiring Chronosphere for $3.35 billion, this partnership consolidates the security layer around Google's AI infrastructure before competitors can establish footholds. The real winner? Enterprises desperate for trusted AI adoption paths that don't expose them to the catastrophic breaches that have plagued nearly every organization experimenting with AI this year.
