Google parent Alphabet is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion, a person familiar with the matter said on Sunday, in a deal that would represent the technology giant's biggest acquisition ever.

The deal, being funded mostly in cash, could come together soon, the source added, speaking on condition of anonymity. Wiz, founded in Israel and now headquartered in New York, is one of the fastest-growing software startups globally, providing cloud-based cybersecurity solutions with real-time threat detection and responses powered by artificial intelligence.

If Alphabet moves ahead with the deal, it would be a rare example of a major technology company attempting a mega-deal amid heightened regulatory scrutiny of the sector under U.S. President Joe Biden's administration. In recent years, U.S. regulators have indicated growing aversion to large technology companies getting bigger through acquisitions.

Wiz generated about $350 million in revenue in 2023 and works with 40% of Fortune 100 companies, according to its website. It recently raised $1 billion in a private funding round that valued the company at $12 billion.

Alphabet and Wiz did not immediately respond to requests for comment.

Wiz works with multiple cloud providers such as Microsoft and Amazon, and counts companies from Morgan Stanley to DocuSign among its customers. With 900 employees across the United States, Europe, Asia and Israel, Wiz previously said it planned to add 400 workers globally in 2024.

Alphabet recently decided not to pursue a takeover of online marketing software company HubSpot.

Dealmaking in the broader technology sector has experienced a pickup this year.

In January, design software company Synopsys agreed to buy smaller rival Ansys for about $35 billion. Hewlett Packard Enterprise struck a deal in January to buy networking gear maker Juniper Networks for $14 billion.

Technology accounted for the largest share of mergers and acquisitions during the first half of the year, jumping more than 42% year-on-year to $327.2 billion, according to data from Dealogic.

The Wall Street Journal reported Alphabet's talks with Wiz earlier on Sunday.

(Reporting by Milana Vinn in New York and Urvi Dugar in Bengaluru; Editing by Will Dunham, Lisa Shumaker and Andrea Ricci)