Palo Alto Networks confirmed it has entered a definitive agreement to acquire Protect AI, a Seattle-based startup focused on securing artificial intelligence and machine learning environments.
While Palo Alto Networks did not disclose financial terms, sources cited by publications including SecurityWeek and BankInfoSecurity estimated the purchase price between $500 million and $700 million. This strategic move signals Palo Alto Networks’ push to address security vulnerabilities arising from the rapid corporate adoption of AI tools.
Protect AI’s Rapid Ascent
Founded in 2022, Protect AI quickly gained notice in the specialized field of AI security. The company secured a $60 million Series B funding round in August 2024, valuing the company around $400 million and bringing its total funding to approximately $108.5 million. Protect AI grew significantly, reaching around 110 employees by April.
The startup had also been active in acquisitions itself, purchasing gen AI attack simulation firm SydeLabs in 2024 and in 2023 already vulnerability naming authority Huntr. Its technology focuses on detecting and mitigating risks unique to AI systems, such as model manipulation, data poisoning, and prompt injection attacks.
Integrating AI Security Expertise
Palo Alto Networks plans to integrate Protect AI’s technology and team, including CEO Ian Swanson and its founders, directly into its newly unveiled Prisma AIRS platform.
Prisma AIRS is positioned as a comprehensive platform designed to secure the entire AI development lifecycle, offering capabilities including, according to the company, “model scanning, risk assessment, GenAI runtime security, posture management, and AI agent security.“
Anand Oswal, SVP and GM at Palo Alto Networks, stated, “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.” Swanson commented that joining Palo Alto Networks “will enable us to scale our mission of making the AI landscape more secure for users and organizations of all sizes.”
How smoothly this integration proceeds and how effectively Protect AI’s tools operate within the larger Palo Alto ecosystem will be key areas to watch.
Competing in the AI Security Arena
This acquisition places Palo Alto Networks more firmly in the competitive field of AI-specific security. Google recently made headlines with its experimental Sec-Gemini v1 model for cyber defense analysis (announced April 5) and its broader Unified Security platform integrating Gemini AI agents, unveiled around April 9. These moves followed Google’s massive $32 billion acquisition of cloud security firm Wiz in March 2025, illustrating the high stakes in the security market.
Microsoft, meanwhile, expanded its Security Copilot platform in late March 2025 with specialized AI agents focused on automating tasks like phishing triage and vulnerability remediation, integrated into products such as Defender and Intune. These agents became available in preview starting April 27. This contrasts with Google’s emphasis on AI for analytical support, highlighting different vendor strategies for leveraging AI in cybersecurity.
Proving AI’s Value Amid Evolving Threats
The industry push towards specialized AI security reflects growing concerns over AI-enhanced cybercrime, such as the significant rise in deepfake-related fraud.
The value proposition extends beyond reacting to threats; AI is demonstrating potential in proactively finding vulnerabilities. For instance, Microsoft revealed on April 2 how its Security Copilot assisted engineers in discovering hidden flaws in critical open-source bootloader software like GRUB2.
Microsoft stated that “Security Copilot helped expedite vulnerability discovery in the bootloaders by refining and iterating prompts that eventually led to the identification of exploitable issues.” This capability to uncover deeply embedded risks reinforces the rationale behind investments like the Protect AI acquisition.
For Palo Alto Networks, whose stock is up 23% over the past year resulting in a market cap near $120 billion according to CNBC, the Protect AI deal follows its late 2023 acquisitions of Dig Security and Talon Cyber Security.
This aligns with a broader trend in cybersecurity M&A where AI capabilities are increasingly driving strategic deals. The Protect AI acquisition is subject to customary closing conditions and regulatory approvals, with completion expected by the first quarter of Palo Alto Networks’ fiscal year 2026.
The company is scheduled to report Q3 earnings on May 21. Further details on Palo Alto Networks’ AI strategy are discussed during their “Hello Tomorrow” livestream event held today.
