Palo Alto expands Google partnership with multibillion-dollar agreement

Palo Alto Networks (PANW) announced a new multibillion-dollar agreement with Google Cloud (GOOGL) on Friday. The deal expands an existing strategic partnership between the two companies.

As part of the agreement, Palo Alto Networks will migrate key internal workloads to Google Cloud. The companies said the move will deepen engineering collaboration and strengthen joint product development.

Palo Alto Networks is now using Google’s Gemini artificial intelligence models to power its security copilots. The company is also using Google Cloud’s Vertex AI platform, according to a joint release.

The companies said the expanded partnership is focused on helping organizations deploy artificial intelligence securely. The effort is aimed at reducing risk while enabling broader adoption of AI technologies.

BJ Jenkins, president of Palo Alto Networks, said businesses are seeking ways to use AI without increasing exposure to threats. He said the partnership is designed to address those concerns.

Palo Alto Networks already works closely with Google Cloud. The cybersecurity firm has more than 75 joint integrations with the cloud provider.

The company has also completed $2 billion in sales through the Google Cloud Marketplace. That figure reflects prior collaboration between the two firms.

Under the new phase of the partnership, customers will be able to protect live AI workloads and data on Google Cloud. The companies said customers will also be able to maintain security policies while accelerating cloud adoption.

The agreement is intended to simplify and unify security tools for shared customers. The companies said it will support protection of critical AI infrastructure.

Matt Renner, president of Google Cloud, said the expanded partnership will provide customers with solutions to secure AI systems from the start. He said the goal is to support the development of new AI agents with built-in security.

Shares of Palo Alto Networks rose nearly 1% on Friday. Shares of Google parent Alphabet increased by less than 1% in the same session.

The announcement was made during regular U.S. market hours on Dec. 19. The companies did not disclose additional financial terms of the agreement.