Palo Alto Networks on Monday confirmed previous reports that it’s acquiring US-based AI security company Protect AI.
Protect AI has developed a platform that enables organizations to secure AI models, to conduct AI red teaming, and to ensure AI runtime security.
Palo Alto Networks said the acquisition of Protect AI enables it to expand its capabilities to protect the new attack surface created by the explosion of AI. Specifically, the company said it will enhance its Prisma AIRS AI security platform.
Protect AI’s CEO, founders, and employees are expected to join Palo Alto Networks. The deal should close in the first quarter of FY2026.
Israeli news website Globes previously reported that its sources had estimated the deal at $650-700 million. Palo Alto Networks did not share any financial information on Monday.
However, the amount would not be surprising considering that Protect AI was valued at $400 million in August 2024, when it announced raising $60 million in Series B funding.
Palo Alto Networks’ previous acquisition was secure enterprise browser Talon, which it bought in 2023, reportedly for $625 million. At around the same time, it acquired cloud security startup Dig Security, reportedly for $400 million.
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