Palo Alto Networks confirmed its acquisition of Protect AI, a US-based AI security company, on Monday. Protect AI specializes in securing AI models, conducting AI red teaming, and ensuring AI runtime security. This acquisition will expand Palo Alto Networks’ capabilities to address the new attack surface created by the rapid growth of AI technologies. The company plans to integrate Protect AI’s technology into its Prisma AIRS AI security platform to enhance its offerings.
The acquisition deal is expected to close in the first quarter of FY2026, with Protect AI’s CEO, founders, and employees joining Palo Alto Networks. While Palo Alto Networks did not disclose the financial details of the acquisition, reports suggest the deal is valued between $650 million and $700 million. This is consistent with previous reports that Protect AI was valued at $400 million in August 2024, when it secured $60 million in Series B funding.
Palo Alto Networks has made several high-profile acquisitions in recent years, including its 2023 purchase of Talon, a secure enterprise browser, for $625 million. Additionally, the company acquired Dig Security, a cloud security startup, for $400 million around the same period. These acquisitions highlight Palo Alto Networks’ strategic efforts to enhance its security solutions portfolio, particularly in emerging fields like AI security and cloud protection.
The integration of Protect AI’s capabilities aligns with Palo Alto Networks’ broader strategy to stay ahead of the evolving cybersecurity landscape. As AI continues to become a major focus for organizations across various industries, securing AI systems and mitigating related risks has become a top priority for security providers. This acquisition reinforces Palo Alto Networks’ position in the AI security market and prepares it to meet future challenges.
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