The deal is reported to be Alphabet's largest ever and is taking place after the company attempted to buy Wiz last year, but the deal did not go through.
The purchase is intended to strengthen Alphabet's cloud service business, which Wiz specializes in, in competition with, among others, Amazon and Microsoft in the rapid AI development.
AI brings new risks, but also new opportunities. Organizations want cybersecurity solutions that improve cloud security and span multiple clouds, says Alphabet's CEO Sundar Pichai during an investor call.
According to The Wall Street Journal, Alphabet's previous largest purchase was when Motorola Mobility was taken over in 2012 for 12.5 billion dollars.
However, even if Alphabet and Wiz have now agreed on a purchase, competition authorities in both the US and Europe may have objections.
Alphabet's share fell almost 3.6 percent in early trading on Wall Street on Tuesday.
