Alphabet, the parent company of Google, is in advanced negotiations to acquire cybersecurity startup Wiz for approximately $23 billion, a person familiar with the matter revealed on Sunday. This potential deal would represent Alphabet’s largest acquisition to date.

The acquisition, primarily funded in cash, could be finalized soon, according to the source, who spoke on condition of anonymity. Wiz, founded in Israel and headquartered in New York, is a rapidly growing software startup that provides cloud-based cybersecurity solutions powered by artificial intelligence.

If completed, the deal would be a rare instance of a major technology company pursuing a significant acquisition under the heightened regulatory scrutiny of the sector during the Biden administration. U.S. regulators have expressed growing concerns about large technology companies expanding through acquisitions in recent years.

Wiz generated $350 million in revenue in 2023 and works with 40% of Fortune 100 companies, including Morgan Stanley and DocuSign. The company raised $1 billion in a private funding round last year, valuing it at $12 billion.

Wiz collaborates with multiple cloud providers, including Microsoft and Amazon, and has 900 employees across the United States, Europe, Asia, and Israel, with plans to add 400 workers globally in 2024.

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