Key takeaways Palo Alto Networks and Google Cloud announced a multibillion-dollar partnership expansion on December 19, 2025, with a Reuters source citing the deal value as approaching $10 billion ove...
The deal, announced on December 19, 2025, represents Google Cloud's largest security services contract to date, according to Reuters.
A source with direct knowledge of the matter told Reuters the agreement involves Palo Alto Networks committing to spend an amount approaching $10 billion with Google Cloud over several years, though neither company officially confirmed the specific financial terms.
The expanded partnership comes as organizations face mounting security challenges related to AI infrastructure.
According to Palo Alto Networks' State of Cloud Report released in December 2025, 99% of surveyed respondents experienced at least one attack on their AI infrastructure over the past year, even as companies dramatically expand their use of cloud infrastructure to support new AI applications and services.
"Every board is asking how to harness AI's power without exposing the business to new threats," said BJ Jenkins, president of Palo Alto Networks, in a statement. "This partnership answers that question."
Jenkins elaborated on the collaboration's approach, stating: "We're removing the friction between security and development, providing a unified platform where the most advanced security is simply a native part of building what's next. Together with Google, we are embedding our AI-powered security deep into the Google Cloud fabric, turning the platform itself into a proactive defense system."
The agreement integrates Palo Alto Networks' comprehensive AI security platform, Prisma AIRS, with Google Cloud's AI and infrastructure capabilities to provide security throughout all stages of hybrid multicloud infrastructure, application development, and at every endpoint.
Under the expanded partnership, customers will be able to protect live AI workloads and data across Google Cloud environments, including Vertex AI and Agent Engine.
The integration also secures developer tools such as the Agent Development Kit (ADK) using Prisma AIRS.
The platform offers several security features, including AI Posture Management for visibility, AI Runtime Security for real-time defense, AI Agent Security for autonomous systems, AI Red Teaming for proactive testing, and AI Model Security for vulnerability scanning.
The collaboration also involves deeper integration of Palo Alto Networks' VM-Series firewalls with Google Cloud, providing software-based threat prevention and deep packet inspection in cloud environments.
This allows businesses to implement and maintain robust security policies while accelerating their adoption of Google Cloud services.
Additionally, Palo Alto Networks' Prisma Secure Access Service Edge (SASE) platform will run on Google's network infrastructure and leverage Google Cloud Interconnect to help customers connect their wide area network infrastructure across multiple clouds while maintaining consistent security protocols.
As part of the agreement, Palo Alto Networks is migrating key internal workloads to Google Cloud. The cybersecurity company is also implementing Google Cloud's Vertex AI platform and Gemini large language models to power its copilot products.
"Some of the spending will go into migrating Palo Alto's existing offerings to Google's platform, but a sizable portion will go into adding new services that involve artificial intelligence," Jenkins told Reuters.
Matt Renner, president and chief revenue officer at Google Cloud, emphasized the market demand driving the partnership. "AI has spawned a tremendous amount of demand for security," Renner said, as reported by Reuters.
In a formal statement, Renner added: "Enterprises are increasingly turning to Google Cloud and Palo Alto Networks to secure their applications and data, together and in a seamless way.
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."
The two companies have maintained a strategic partnership since 2018, with more than 75 joint integrations already in place.
Prior to this expanded agreement, Palo Alto Networks had completed $2 billion in sales through the Google Cloud Marketplace.
The relationship between the companies extends to the executive level, with Palo Alto Networks CEO Nikesh Arora having served as Google's chief business officer until 2014.
Following the announcement on Friday, Palo Alto Networks' shares rose nearly 1%, while shares of Google parent company Alphabet increased less than 1%, according to CNBC.
The deal positions Google Cloud to compete more aggressively in the cloud security market against rivals Amazon Web Services and Microsoft Azure.
Renner described the agreement as "the latest showcase of Google Cloud's advantageous positioning as AI reshapes the competitive landscape against hyperscaler rivals."
The partnership expansion arrives as both companies pursue aggressive growth strategies in AI-powered security.
Google Cloud is pursuing a proposed $32 billion acquisition of security startup Wiz, pending regulatory approval.
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