Palo Alto Networks Plans to Buy Security Startup Protect AI for $500M+

Palo Alto Networks is betting big on AI security. The cybersecurity giant plans to acquire Seattle-based Protect AI in a deal worth over $500 million, showing just how valuable AI security has become.

The timing makes sense. Nearly 75% of companies reported AI-related security breaches in 2024. Protect AI, founded by former Amazon and Oracle leaders, helps Fortune 500 companies monitor their machine learning systems for vulnerabilities.

The two-year-old startup has been on a tear. It raised $60 million earlier this year at a $400 million valuation and made four acquisitions. Now it's joining forces with Palo Alto, which boasts a $120 billion market cap.

The deal comes as Palo Alto launches its new AI security platform, Prism AIRS. Morgan Stanley predicts this market will explode to $135 billion by 2030 as companies scramble to secure their AI systems.

Why this matters:

• The price tag shows how critical AI security has become - companies will pay a premium to avoid becoming the next AI breach headline
• Seattle is emerging as an AI security hub, with Protect AI joining a growing pack of local cybersecurity startups tackling the AI threat

Read on, my dear:

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