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.

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.