Alphabet’s Google Cloud unit has sealed what executives describe as its biggest security pact ever, a multiyear agreement with Palo Alto Networks valued at nearly $10 billion, according to people familiar with the matter. The deal, announced Friday, catapults the partnership into the heart of enterprise defenses against surging AI-driven threats, blending Palo Alto’s firewall prowess with Google Cloud’s infrastructure might.

Under the expanded alliance, Palo Alto Networks plans to migrate significant workloads to Google Cloud, leveraging platforms like Google Kubernetes Engine and BigQuery for its own operations. Customers gain unified access to Palo Alto’s Prisma suite—including AI Runtime Security, Secure Access Service Edge, and next-generation firewalls—integrated natively across Google Cloud environments. “This agreement represents a pivotal moment in how enterprises approach security for their cloud and AI initiatives,” said Nikesh Arora, chief executive of Palo Alto Networks, in a PR Newswire statement.

The partnership builds on years of collaboration dating back to 2018, when Palo Alto first brought its VM-Series virtual firewalls to Google Cloud Marketplace. By April 2025, Palo Alto had already surpassed $1.5 billion in cumulative sales through the marketplace, a milestone highlighting accelerating demand for integrated security in cloud migrations (Palo Alto Networks).

AI Threats Reshape Security Priorities

Cyberattacks exploiting artificial intelligence are proliferating, with threat actors using AI to automate phishing, generate deepfakes and craft sophisticated malware. Palo Alto’s chief product officer, Prateek Kumar, noted in a CNBC interview that “AI is the new attack surface.” The deal deploys Prisma AIRS, Palo Alto’s AI runtime security tool, to detect and mitigate risks in AI models and agentic systems running on Google Cloud.

Google Cloud CEO Thomas Kurian emphasized the need for platform-level protection. “Enterprises are accelerating AI adoption, but security can’t lag,” Kurian said during the announcement. The integration extends to Google Distributed Cloud, allowing air-gapped deployments for regulated industries like finance and healthcare, where data sovereignty is paramount.

This move comes amid intensifying competition. Rivals like Microsoft Azure with CrowdStrike and Amazon Web Services with trends toward native security tools vie for the same turf. A source told Reuters the pact approaches $10 billion in commitments over several years, dwarfing prior Google Cloud security wins and signaling Alphabet’s push to close the gap with AWS and Azure in enterprise spend.

Migrating Workloads, Unifying Defenses

Palo Alto’s shift includes running its Cortex XSIAM extended security intelligence and automation management platform on Google Cloud, tapping Vertex AI for enhanced threat detection. This internal migration underscores confidence in Google’s scalability, with Palo Alto committing to Google Cloud as a primary provider for future development.

For joint customers, the benefits materialize through co-engineered solutions. Prisma Access now embeds Google Cloud’s Secure Web Gateway, while Cloud-Native Application Protection Platform (CNAPP) fuses with Google Cloud Armor for workload protection. “We’ve unified security across networks, clouds and AI agents,” Arora added, pointing to reduced complexity in managing fragmented tools.

Benzinga reported the expansion targets secure AI development, with Palo Alto’s next-gen firewalls optimizing for Google Cloud’s TPUs and GPUs used in AI training (Benzinga). Early adopters like financial services firms are testing these integrations to safeguard generative AI pipelines.

Market Ripples and Stock Surge

Shares of Palo Alto Networks jumped 5% in after-hours trading Friday, reflecting investor optimism about recurring revenue from cloud marketplace sales and the landmark deal. Google parent Alphabet’s stock held steady, buoyed by cloud segment growth projections. Analysts at Tech Startups called it Google Cloud’s “largest security deal yet,” deepening a 2018 tie-up amid rising AI threats (Tech Startups).

The agreement aligns with broader industry shifts. Gartner recently named Palo Alto a leader in AI security platforms, citing its platformization strategy. On X, posts from Palo Alto Networks highlighted ransomware recoveries using Cortex XDR, now supercharged by Google Cloud analytics, amassing thousands of views and underscoring real-world urgency.

Devdiscourse detailed how Palo Alto will enhance AI-driven offerings post-migration, positioning the duo against evolving threats like AI-powered supply chain attacks (Devdiscourse). This isn’t just a vendor handshake—it’s a blueprint for securing the agentic AI wave.

Technical Deep Dive: Prisma Meets Vertex

At the core, Prisma AIRS scans AI models for vulnerabilities like prompt injection and data exfiltration, integrating with Vertex AI Pipelines for continuous monitoring. VM-Series firewalls scale elastically on Google Kubernetes Engine, enforcing zero-trust policies with inline deep packet inspection powered by custom ASICs.

SASE capabilities extend remote access securely via Google Cloud’s global fiber network, reducing latency for distributed workforces. Investing.com noted expansions to secure AI specifically, with joint go-to-market efforts targeting Fortune 500 firms accelerating cloud-native apps (Investing.com).

Compliance features shine for regulated sectors: FedRAMP High authorization for Prisma Cloud on Google Distributed Cloud Hosted ensures U.S. government workloads meet stringent controls. StockTitan highlighted unification of Prisma tools with VM-Series, streamlining operations across hybrid environments.

Strategic Implications for Enterprises

Enterprises face a paradox: AI accelerates innovation but amplifies risks. This pact offers a turnkey path, with Palo Alto’s $1.5 billion Marketplace milestone proving traction—sales grew from integrations securing Google Cloud adopters. Seeking Alpha observed partnerships countering AI-targeted cyberattacks, vital as breaches cost averages hit $4.88 million per IBM data.

Looking ahead, expect co-innovation roadmaps. Palo Alto’s Unit 42 threat intelligence, fused with Google Chronicle, promises predictive defenses. For industry insiders, this deal redefines security operations centers, embedding AI-native protections from code to runtime.

The multiyear horizon positions both firms for sustained growth. As Kurian put it, “Security is foundational to AI trust.” With nearly $10 billion on the line, Google Cloud and Palo Alto are betting big on a fortified future.