Google Cloud deepens cooperation with Palo Alto Networks, signing an AI security deal worth nearly $10 billion.

```

Google Cloud and cybersecurity company Palo Alto Networks are expanding their strategic partnership, signing a multi-year contract worth nearly $10 billion, making it Google Cloud's largest security services deal to date.

On December 19, according to Reuters citing sources familiar with the matter, the contract includes Palo Alto Networks' commitment to pay "close to $10 billion" to Google Cloud over the next few years. The two parties will focus on jointly developing AI-driven security services.

Executives from both sides pointed out that as generative AI tools are being used to launch cyber attacks, the demand for AI-powered security solutions among enterprises is rising significantly. This collaboration not only further strengthens Google Cloud’s advantage over Amazon and Microsoft in the AI-transformed cloud computing competition, but also provides key technical support for Palo Alto Networks in the rapidly expanding AI security market.

Cooperation Details and Use of Funds

According to sources, the nearly $10 billion contract will be executed in phases. Although executives did not disclose specific figures, Palo Alto president BJ Jenkins told Reuters that part of the funds will be used to migrate the company's existing services to Google Cloud, while the majority will be invested in developing new security services based on artificial intelligence.

Google Cloud chief revenue officer Matt Renner stated: “AI has generated enormous demand for security services.” Jenkins compared the current situation to the early days of cloud computing: “It's just like when cloud computing began to emerge, there are now new security threats that people never imagined.”

AI Reshapes the Cybersecurity Landscape

Cyber attacks are increasingly using generative AI tools, which are also key technologies employed by security service providers to strengthen defense. Jenkins pointed out that although AI has brought fundamental changes to functions such as software development, the application of AI in cybersecurity is still in its early stages.

To meet the growing corporate demand for AI security, both Google and Palo Alto Networks are continually increasing their investment in this field. Google's $32 billion acquisition of security company Wiz is awaiting regulatory approval, while Palo Alto Networks launched AI-powered security services in October and announced plans last month to acquire software firm Chronosphere for $3.35 billion.

Strategic Cooperation History and Competitive Advantages

The two companies have forged a strategic partnership since 2018. Notably, Palo Alto CEO Nikesh Arora was once a Google executive, serving as chief business officer until 2014.

Google Cloud chief revenue officer Matt Renner said the new partnership highlights Google Cloud’s differentiated advantages in the AI-driven competitive landscape compared to other hyperscale cloud providers like Amazon and Microsoft. This marks a significant breakthrough for Google Cloud in the enterprise-level AI security services market.

Risk Warning and DisclaimerThe market involves risks. Investment requires caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial circumstances, or needs. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their particular situation. Investment based on this article is at your own risk. ```