A deepened partnership between Google Cloud and Palo Alto Networks will see critical internal workloads move to Google Cloud under a deal valued at close to $10 billion, according to a person familiar with the agreement. The move highlights growing demand for secure cloud infrastructure as enterprises accelerate their use of artificial intelligence.
The agreement builds on an existing strategic relationship and increases engineering collaboration between the two companies. Palo Alto Networks is now using Google Gemini artificial intelligence models to power its copilots and is also working with the Vertex AI platform on Google Cloud. The companies said the expanded partnership is designed to help businesses adopt AI while keeping security risks under control.
“Every board is asking how to harness AI’s power without exposing the business to new threats,” BJ Jenkins, president of Palo Alto Networks, said in a statement. “This partnership answers that question.” Palo Alto Networks already has more than 75 joint integrations with Google Cloud and has generated $2 billion in sales through the Google Cloud Marketplace, reflecting the scale of their existing collaboration.
Under the new phase of the deal, customers of Palo Alto Networks will be able to secure live AI workloads and data on Google Cloud, maintain consistent security policies, speed up cloud adoption and simplify security operations. Shares of Palo Alto Networks rose nearly 1% on Friday, while shares of Google parent Alphabet gained less than 1%. “This latest expansion of our partnership will ensure that our 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,” Google Cloud President Matt Renner said in a statement.
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