Palo Alto Networks is making another big move. The cybersecurity giant today announced that it plans to acquire Protect AI, the rapidly rising name for AI and machine learning security.
The news comes a year after Palo Alto Networks acquired IBM’s QRADAR cloud software assets as part of the cybersecurity giant’s strategy to expand its customer base and strengthen its consultant network.
As part of the deal, protecting AI CEOs, founders and teams will join Palo Alto Networks after the acquisition is over. The transaction is still subject to regulatory approvals and other standard terms and is expected to close in the first quarter of the Palo Alto Networks in 2026, Palo Alto Networks said in a news release.
The transaction, first reported by CNBC, shows that Palo Alto Networks is focused on securing the AI ecosystem. Financial terms were not disclosed, but previous reports fixed the value of the transaction between $650 million and $700 million.
“Palo Alto Networks announced on Monday its intention to acquire AI Protect AI, a startup specialized in protecting artificial intelligence and machine learning applications, in a private total,” CNBC reported.
Released in 2022, Protect AI created its own name by tackling the new class of cybersecurity challenges brought by AI. Its offerings include AI Security Attitude Management (AI-SPM), Large-scale Language Model (LLM) Security, and Genai Red Teaming. Protecting AI tools can help you discover and fix vulnerabilities such as model manipulation, data addiction, and rapid injection attacks.
The company is rapidly growing a series of strategic acquisitions that include 110 employees, $108.5 million in funding, and a series of strategic acquisitions that include Siderab in Genai attack simulations and Huntr for AI-centric bug bounties.
“When AI-powered applications become central to the enterprise, businesses can build AI applications with comprehensive security by extending AI security capabilities to protect AI innovative solutions. “When AI-powered applications become central to the enterprise, businesses can build AI applications with comprehensive security,” said Anand Oswal, SVP and GM at Palo Alto Networks.
Protect AI trading is Palo Alto Networks’ biggest startup acquisition since it purchased Expanse for $797.2 million in 2020. It is also expected to heat the AI cybersecurity market to reach $1027.8 billion by 2032.
“Together with Palo Alto Networks, we can expand our mission to make AI landscapes safer for users and organizations of all sizes. We are excited about the opportunity to share our vision and integrate the scope of operational scale and cybersecurity to amplify our impact globally.”
The Palo Alto Network is not alone in this race. Cisco recently scooped up robust intelligence for $400 million. We are also pushing hard on AWS, Zscaler, and others. When you purchase AI Protect AI, Palo Alto Networks offers a greater footprint in ensuring your AI infrastructure, especially governance, and ensuring that you have a work that fits well with AI access, runtime and inline protection services.
The acquisition, announced alongside RSA Conference 2025, is expected to close in the first quarter of Palo Alto Networks in the first quarter of fiscal year 2026, with pending regulatory approval.
For now, as more companies are in a hurry to integrate AI, Palo Alto Networks is making it clear they don’t want to be left behind.
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