Palo Alto Networks to Acquire Protect AI for Over $500 Million, Boosting AI Security Capabilities

Palo Alto Networks acquiring Protect AI to boost artificial intelligence tools

Palo Alto Networks signage displays on the screen at the Nasdaq Market in New York City, U.S., March 25, 2025. Palo Alto Networks announced on Monday its intent to acquire Protect AI, a startup specializing in securing artificial intelligence and machine learning applications, for an undisclosed sum. The deal is set to close by the first quarter of fiscal year 2026. "By extending our AI security capabilities to include Protect AI's innovative solutions for Securing for AI, businesses will be able to build AI applications with comprehensive security," said Anand Oswal, senior vice president and general manager of network security at Palo Alto Networks, in a release. Palo Alto has been steadily bolstering its artificial intelligence systems to confront increasingly sophisticated cyber threats. Integrating Protect AI's technology would help the company to enhance its newly launched Prisma AIRS platform, which is designed to safeguard AI applications from emerging threats like model manipulation, data poisoning, and prompt injection attacks. The company's stock price is up 23% in the past year lifting its market cap close to $120 billion.

Palo Alto Networks to acquire Seattle cybersecurity startup Protect AI

Cybersecurity giant Palo Alto Networks plans to acquire Protect AI, a Seattle startup founded in 2022 that helps companies monitor the various layers and components of machine learning systems. Terms of the deal, announced Monday, were not disclosed. The deal is expected to close later this year. Sources familiar with the deal say it was valued north of $500 million. Protect AI raised a $60 million Series B round in 2024, at a reported valuation of $400 million. Palo Alto, which has a market capitalization close to $120 billion, said the acquisition will help expand its capabilities "to protect the dynamic new attack surface created by the explosion of AI." The company also announced a new AI security platform on Monday called Prism AIRS. Founded by former engineering leaders at Amazon and Oracle, Protect AI serves Fortune 500 companies across finance, healthcare, and government sectors. The startup is riding tailwinds from the rising adoption of AI as enterprises look for ways to secure new technologies. Nearly three-fourths of companies say they had an AI-related breach in 2024, according to a report from HiddenLayer. Morgan Stanley projects that the market for AI-based cybersecurity products will surge to $135 billion by 2030. Protect AI is ranked No. 10 on the GeekWire 200, our list of top privately held tech startups in the Pacific Northwest. "When we started Protect AI, our mission was clear -- to help organizations secure the most important technology of our time: AI," CEO and co-founder Ian Swanson said on LinkedIn. "Thanks to the incredible team at Protect AI, the support of our customers, partners, and investors, and the growing urgency around AI security, we've built category leading solutions." Protect AI acquired Laiyer AI and SydeLabs last year, and previously swooped up Rebuff and Huntr. The company employs around 120 people across Seattle, Berlin, and Bangalore, according to LinkedIn. The company's investors include Acrew Capital, Aviso Ventures, boldstart ventures, Evolution Equity Partners, Knollwood Capital, Pelion Ventures, 01 Advisors, Samsung, StepStone Group, and Salesforce Ventures. Swanson previously founded Sometrics, a virtual currency platform and in-game payments provider. It was acquired by American Express in 2011. After that, he founded DataScience, a cloud workspace platform that was acquired by Oracle in 2018. Swanson also held AI leadership roles at AWS and Oracle. Swanson co-founded Protect AI with Badar Ahmed, a former engineering leader at Oracle and DataScience, and Daryan Dehghanpisheh, a former leader at AWS. The company's founders and employees are expected to join Palo Alto once the deal closes. A growing cohort of cybersecurity startups are based in the Seattle region or have a significant presence in the area, including Chainguard, Dropzone AI, Oleria, SpecterOps, Staris, and several others.

Palo Alto Networks buys Protect AI for reported $500M+, debuts new cybersecurity tools - SiliconANGLE

Palo Alto Networks buys Protect AI for reported $500M+, debuts new cybersecurity tools Palo Alto Networks Inc. is expanding its product portfolio with a new platform for protecting artificial intelligence models and an upgraded version of its security-optimized browser. The company debuted the offerings today against the backdrop of the news that it's acquiring Protect AI Inc., a Seattle-based cybersecurity startup. Palo Alto Networks didn't disclose the acquisition terms. However, sources told GeekWire that the deal is worth more than $500 million. Protect AI raised $108.5 million from Salesforce Ventures, Samsung Electronics Co. and other backers prior to the acquisition. It develops a suite of software tools that companies can use to protect AI models and the applications they power from cyberattacks. One of Protect AI's products, Recon, can test a newly developed AI workload for vulnerabilities before it's deployed. The tool finds weak points using a library of 450 simulated cyberattacks. Another Shield AI product called Layer filters malicious prompts once the workload is in production. According to the company, its software can also ease several other tasks for development teams. That includes the process of finding the most suitable AI model for an application project. Palo Alto Networks expects to close the acquisition by November. Afterwards, the Protect AI team will join the company to help enhance Prisma AIRS, a new AI security platform it debuted today in conjunction with the deal. The offering covers many of the same use cases as Protect AI's product suite. Before deploying a new AI workload to production, a company can use Prisma AIRS to test it for vulnerabilities. The platform includes a tool that automatically performs red-teaming, the task of simulating cyberattacks to find weak points in an application. Palo Alto Networks says that Prisma AIRS spots misconfigured access permissions, AI models that are susceptible to tempering and other risks. Once an AI workload is deployed in production, Prisma AIRS filters malicious prompts using a runtime security component. It also spots other issues. The software blocks, among others, hallucinations and requests that may cause an AI application to use an excessive amount of hardware resources. A third set of features in Prisma AIRS is designed to protect AI agents. The platform can spot tool misuse, or cyberattacks that target the applications an AI agent uses to perform tasks. For example, if a programming agent has permission to make changes in a company's GitHub repositories, hackers might seek to use it to inject malicious code. Prisma AIRS also promises to block several other types of agent-focused cyberattacks. "Prisma AIRS empowers teams with answers to essential questions, like whether someone is exploiting an LLM to extract sensitive information or if a compromised API is feeding the model poisoned data," said Anand Oswal, the senior vice president and general manager of network security at Palo Alto Networks. The company debuted Prism AIRS today alongside enhancements to its existing product portfolio. The first set of upgrades is rolling out to Prisma Access Browser, a browser that uses AI to block malicious websites. It ships as part of Palo Alto Networks' Prisma SASE platform, which enterprises use to establish secure network connections between disparate systems. The latest Prisma Access Browser release includes new detections, automated workflows for spotting cyberattacks. According to Palo Alto Networks, they can detect browser-in-the-browser phishing attacks. Those are phishing webpages that launch a fake browser window to trick users into sharing sensitive data. The new detections likewise spot last-mile reassembly cyberattacks, which download malware onto user devices in a disguised, inactive form designed to avoid detection. The other existing product for which Palo Alto Networks introduced enhancements today is its Cortex XSIAM platform. The software enables companies to collect cybersecurity data from multiple sources, analyze that data to find breach indicators and automate parts of the remediation workflow. The latest Cortex XSIAM release includes a new dashboard called the Cloud & SOC Command Center. According to Palo Alto Networks, it enables cybersecurity teams to track the security of cloud and on-premises technology assets in one place. The dashboard identifies vulnerable assets, prioritize those vulnerabilities by severity and highlights which ones are being actively targeted by hackers.

Palo Alto Networks To Acquire Protect AI For Deeper Push Into AI-SPM

While just founded in 2022, Protect AI is already an 'important player' in AI security, Palo Alto Networks says. Palo Alto Networks announced Monday that it plans to acquire Protect AI, a startup focused on AI security, as the company looks to accelerate its protection of technologies including GenAI and agents. Terms of the deal, which had previously been reported as under consideration for up to $700 million, were not disclosed. [Related: 5 Big Palo Alto Networks Launches On XSIAM, SASE, AI Security] Protect AI brings a focus on AI-SPM (AI security posture management) that aims to provide greater visibility, management and security for AI/ML environments, as well as providing remediation and governance capabilities. In July 2024, the startup announced the acquisition of SydeLabs, which brought capabilities for automation simulation of attacks against GenAI systems. Then in August, Protect AI closed $60 million in Series B funding led by Evolution Equity Partners, bringing the company to $108.5 million in total funding raised to date. In a news release, Palo Alto Networks said that its efforts in AI security will receive a major boost from the acquisition. Protect AI has "already established itself as an important player in this increasingly critical new area of security," the company said in the release. The announcement came at the same time as Palo Alto Networks' debut of a new AI security platform, Prisma AIRS. Capabilities on the platform include AI model scanning, posture management, AI red teaming and runtime security -- along with security for AI agents. For Palo Alto Networks, the planned acquisition of Protect AI will enable the company to "more quickly and comprehensively accelerate its vision for Prisma AIRS," the company said in the news release. The acquisition was announced as the RSA Conference 2025 got underway Monday. Palo Alto Networks also unveiled major enhancements Monday to two of its other key product areas with updates to Cortex XSIAM and Prisma SASE.

Palo Alto Networks to Acquire Protect AI to Secure the Future of Artificial Intelligence

Palo Alto Networks was an early mover in building out solutions for securing AI, and Protect AI has already established itself as an important player in this increasingly critical new area of security. Palo Alto Networks announced that it has entered into a definitive agreement to acquire Protect AI, an innovative leader in securing the use of Artificial Intelligence (AI) and Machine Learning (ML) applications and models. This strategic acquisition reflects Palo Alto Networks' commitment to remaining at the forefront of next-generation cybersecurity innovation, and expanding its capabilities to protect the dynamic new attack surface created by the explosion of AI.

Palo Alto Networks Announces Intent to Acquire Protect AI, a Game-Changing Security for AI Company

The acquisition will enable secure pursuit of AI innovation with confidence by helping customers discover, manage, and protect against AI-specific security risks -- securing AI end to end from development to runtime. Palo Alto Networks® (NASDAQ: PANW), the global cybersecurity leader, today announced that it has entered into a definitive agreement to acquire Protect AI, an innovative leader in securing the use of Artificial Intelligence (AI) and Machine Learning (ML) applications and models. This strategic acquisition reflects Palo Alto Networks' commitment to remaining at the forefront of next-generation cybersecurity innovation, and expanding its capabilities to protect the dynamic new attack surface created by the explosion of AI. Large enterprises and government organizations are building a complex ecosystem of AI models, agents, infrastructure, tools, APIs and third party components. This creates new and often overlooked risks, with threat actors exploiting vulnerabilities in different layers through techniques like model manipulation, data poisoning and prompt injection attacks. This threat landscape requires purpose-built solutions to reduce risk and provide best-in-class security. Palo Alto Networks was an early mover in building out solutions for securing AI, and Protect AI has already established itself as an important player in this increasingly critical new area of security. After the close of the transaction, Protect AI's solutions and team of experts will enable Palo Alto Networks to more quickly and comprehensively accelerate its vision for Prisma AIRS™, the industry's most complete AI security platform, also announced today. Prisma AIRS will offer customers unparalleled protection for one of the most transformative technologies of our time. As organizations explore embedding AI in their processes, Prisma AIRS will enable them to deploy AI bravely by protecting the entire AI development lifecycle to meet enterprise requirements for model scanning, risk assessment, GenAI runtime security, posture management, and AI agent security. Anand Oswal, SVP and GM, Palo Alto Networks "As AI-powered applications become core to businesses, they bring risks traditional security tools can't adequately handle. By extending our AI security capabilities to include Protect AI's innovative solutions for Securing for AI, businesses will be able to build AI applications with comprehensive security. With the addition of Protect AI's existing portfolio of solutions and team of experts, Palo Alto Networks will be well-positioned to offer a wide range of solutions for customers' current needs, and also be able to continue innovating on delivering new solutions that are needed for this dynamic threat landscape." Ian Swanson, Co-Founder & CEO, Protect AI "Joining forces with Palo Alto Networks will enable us to scale our mission of making the AI landscape more secure for users and organizations of all sizes. We are excited for the opportunity to unite with a company that shares our vision and brings the operational scale and cybersecurity prowess to amplify our impact globally." Protect AI CEO, founders, and employees are expected to join Palo Alto Networks once the deal closes. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close by Palo Alto Networks' first quarter of fiscal 2026. To learn more about Protect AI and Prisma AIRS, and what's next in AI security from Palo Alto Networks, register to attend the "Hello Tomorrow" livestream event on Tuesday, April 29, 2025 at 2:30PM PT. Follow Palo Alto Networks on Twitter, LinkedIn, Facebook and Instagram. About Palo Alto Networks As the global cybersecurity leader, Palo Alto Networks (NASDAQ: PANW) is dedicated to protecting our digital way of life via continuous innovation. Trusted by organizations worldwide, we provide comprehensive AI-powered security solutions across network, cloud, security operations and AI, enhanced by the expertise and threat intelligence of Unit 42. Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation. Discover more at www.paloaltonetworks.com.

Palo Alto Networks Introduces Prisma AIRS: the Foundation on which AI Security Thrives

The world's most comprehensive AI security platform designed to protect the entire AI ecosystem -- Apps, agents, models, and data Palo Alto Networks® (NASDAQ: PANW), the world's leading AI cybersecurity company, today announced Prisma AIRS™, a groundbreaking AI security platform that serves as the cornerstone for robust AI protection, designed to protect the entire enterprise AI ecosystem - AI apps, agents, models, and data - at every step. Building upon the company's Secure AI by Design portfolio launched last year, Prisma AIRS enables customers to deploy AI bravely and addresses the critical need for robust security in the face of rapid AI adoption across enterprises. Enterprises are rapidly embracing AI, deploying AI apps and LLMs in nearly every function, from customer support to code generation, driving innovation but also introducing security blind spots, risk, and vulnerabilities. To more effectively protect AI initiatives and prevent security incidents, organizations need a comprehensive AI security platform. Using best-in-class security to protect the entire AI ecosystem, Prisma AIRS empowers organizations to deploy AI confidently knowing that whatever they build is secure. Capabilities of Prisma AIRS include: AI Model Scanning: Enable safe adoption of AI models by scanning them for vulnerabilities. Secure your AI ecosystem against risks such as model tampering, malicious scripts and deserialization attacks. Posture Management: Gain insight into security posture risks associated with your AI ecosystem such as excessive permissions, sensitive data exposure, platform misconfigurations, access misconfigurations and more. AI Red Teaming: Uncover potential exposure and lurking risks before bad actors do. Perform automated penetration tests on your AI apps and models using our Red Teaming agent that stress tests your AI deployments, learning and adapting like a real attacker. Runtime Security: Protect your LLM-powered AI apps, models and data against runtime threats such as prompt injection, malicious code, toxic content, sensitive data leak, resource overload, hallucination, and more. AI Agent Security: Secure agents -- including those built on no-code/low-code platforms -- against new agentic threats such as identity impersonation, memory manipulation, and tool misuse. Lee Klarich, Chief Product Officer for Palo Alto Networks: "AI agents and apps are transforming the way we work and live. In parallel, the attack surface isn't just expanding, it's fundamentally changing. The last thing organizations need is more point products to secure their use of AI. Organizations need best-in-class security delivered via the right architecture - platformization is that architecture. Prisma AIRS addresses both traditional and AI specific threats with best-in-class security capabilities delivered in a comprehensive, unified AI security platform that enables organizations to deploy AI bravely." Anand Oswal, SVP and GM, Palo Alto Networks "As organizations integrate AI into every aspect of their operations, securing it requires a runtime security platform that provides continuous visibility and real-time insight. Without this, security teams are left in the dark about how AI is being used, misused, or manipulated, which puts critical data and decisions at risk. Prisma AIRS empowers teams with answers to essential questions, like whether someone is exploiting an LLM to extract sensitive information or if a compromised API is feeding the model poisoned data. These insights are vital to maintaining trust and safeguarding AI." Prisma AIRS will be strategically enhanced by the company's recently announced intent to acquire Protect AI, an innovative leader in securing the use of AI. The acquisition of Protect AI is subject to customary closing conditions and is expected to close by our first quarter of fiscal 2026. To learn more about Prisma AIRS, and what's next in AI security from Palo Alto Networks, register to attend the "Hello Tomorrow" livestream event on Tuesday, April 29, 2025 at 2:30PM PT. Follow Palo Alto Networks on X (formerly Twitter), LinkedIn, Facebook and Instagram. About Palo Alto Networks As the global cybersecurity leader, Palo Alto Networks (NASDAQ: PANW) is dedicated to protecting our digital way of life via continuous innovation. Trusted by organizations worldwide, we provide comprehensive AI-powered security solutions across network, cloud, security operations and AI, enhanced by the expertise and threat intelligence of Unit 42. Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation. Discover more at www.paloaltonetworks.com.

Palo Alto Networks launches Prisma AIRS AI security platform By Investing.com

SANTA CLARA, Calif. - Palo Alto Networks (NASDAQ: PANW), a prominent player in the software industry with a market capitalization of $118.5 billion, unveiled its new AI security platform, Prisma AIRS, today, aiming to provide comprehensive protection across the entire enterprise AI ecosystem. The announcement, which helped drive an impressive 11.8% stock return over the past week, comes as a follow-up to the company's Secure AI by Design portfolio, introduced last year. Prisma AIRS is engineered to safeguard AI applications, agents, models, and data from emerging threats by offering features such as AI Model Scanning, Posture Management, AI Red Teaming, Runtime Security, and AI Agent Security. These capabilities are designed to detect vulnerabilities, manage security posture, conduct penetration tests, and protect against runtime threats. The platform's introduction is a response to the growing adoption of AI in enterprise operations, which has led to new security challenges. Lee Klarich, Chief Product Officer at Palo Alto Networks, emphasized the need for a unified security platform to address both traditional and AI-specific threats, enabling organizations to confidently deploy AI technologies. The company's strong market position is reflected in its robust revenue growth of 13.9% and an overall "GREAT" financial health score, according to InvestingPro data. Anand Oswal, SVP and GM at Palo Alto Networks, highlighted the platform's ability to offer real-time insights and continuous visibility into AI usage, which is crucial for preventing misuse and securing critical data. Additionally, Palo Alto Networks announced its intent to acquire Protect AI, a company specializing in AI security, with the acquisition expected to close by the first quarter of fiscal 2026. This move is set to further strengthen Prisma AIRS's capabilities. The company invites interested parties to learn more about Prisma AIRS and the future of AI security by registering for the "Hello Tomorrow" livestream event scheduled for Tuesday, April 29, 2025. Palo Alto Networks, a global leader in cybersecurity, continues to innovate with AI-powered security solutions, as stated in the press release. However, the company also cautions that forward-looking statements involve risks and uncertainties, and there is no guarantee of future performance. This news article is based on a press release statement from Palo Alto Networks. With analyst price targets ranging from $123 to $235 and 29 analysts recently revising their earnings estimates upward, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports, which provide exclusive financial metrics and expert analysis for over 1,400 top stocks. In other recent news, Palo Alto Networks announced its plans to acquire Protect AI, a company specializing in AI and ML security. This acquisition is aimed at enhancing Palo Alto Networks' capabilities in addressing emerging threats in the AI landscape. The deal is expected to close by the first quarter of fiscal 2026, pending regulatory approvals. In terms of financial performance, Palo Alto Networks has surpassed $1.5 billion in cumulative sales on Google Cloud Marketplace, highlighting its strong presence in secure cloud and AI adoption. Additionally, KeyBanc Capital Markets has reiterated an Overweight rating on Palo Alto Networks, with a price target of $240, reflecting confidence in the company's growth strategy and revenue targets. Meanwhile, UBS maintained a Neutral rating with a $200 price target, noting the potential impact of the Protect AI acquisition on Palo Alto Networks' position in AI security. The company's collaboration with Google Cloud has been recognized with multiple Partner of the Year awards, underscoring the effectiveness of their joint security solutions. These developments indicate Palo Alto Networks' ongoing efforts to innovate and expand its cybersecurity offerings.