Palo Alto Networks acquiring Protect AI

Palo Alto Networks announced on Monday its intent to acquire Protect AI, a startup specializing in securing artificial intelligence and machine learning applications, for an undisclosed sum.

The deal is set to close by the first quarter of fiscal year 2026.

“By extending our AI security capabilities to include Protect AI’s innovative solutions for Securing for AI, businesses will be able to build AI applications with comprehensive security,” said Anand Oswal, senior vice president and general manager of network security at Palo Alto Networks, in a release.

Palo Alto has been steadily bolstering its artificial intelligence systems to confront increasingly sophisticated cyber threats. The use of rapidly built ecosystems of AI models by large enterprises and government organizations has created new vulnerabilities. The company said those risks require purpose-built defenses beyond conventional cybersecurity.

The acquisition would fold Protect AI’s solutions and team into Palo Alto’s newly announced Prisma AIRS platform. Palo Alto said Protect AI has established itself as a key player in what it called a “critical new area of security.”

Protect AI’s CEO Ian Swanson said joining Palo Alto would allow the company to “scale our mission of making the AI landscape more secure for users and organizations of all sizes.”

The company’s stock price is up 23% in the past year lifting its market cap close to $120 billion. Palo Alto reports third-quarter earnings on May 21.