Palo Alto Networks has acquired Israeli cybersecurity startup Koi in a deal valued at about $400 million. This move underscores the growing importance of protecting AI-powered systems from security risks.
The fast growth of tools like Claude Code and OpenClaw is helping people work faster and be more productive. However, these AI tools also create new security risks, especially on devices such as laptops and desktop computers.
By adding Koi’s technology to Prisma AIRS, Palo Alto Networks will improve visibility and security for AI tools on devices. It will give companies one system to manage and secure AI across their organization. The company will also add a new feature to Cortex XDR to find and fix risks in AI software. At the same time, Koi’s technology will still be available as a separate product, so businesses can use it along with their current security tools.
Lee Klarich, Chief Product & Technology Officer of Palo Alto Networks, said: “Agentic AI presents tremendous opportunity for the enterprise, yet they create a new attack surface that traditional security tools were not built to detect. These agents operate with access to critical systems and sensitive data, creating the ultimate insider threat. With the acquisition of Koi, we are delivering the only solution I’ve seen to secure vibe coding and agentic AI at the endpoint, so our customers don’t have to choose between innovation and security.”
Amit Assaraf, CEO and Co-Founder of Koi, said: “By joining Palo Alto Networks, we will be able to provide our customers with the most comprehensive solution for securing all AI and software on the endpoint, and across the enterprise. Together, we are establishing Agentic Endpoint Security as the new imperative, giving our customers the secure foundation they need to lead in an AI-native world.”
Koi was started in 2024 and raised a total of $48 million, including $38 million in a Series A funding round last September. The company was acquired quickly, giving an early exit to its investors like Team8, NFX, Battery Ventures, and Picture Capital.
The deal was first announced two months ago and is part of Palo Alto Networks’ bigger growth plan. With the addition of Koi, the company has now acquired 12 cybersecurity startups from Israel since 2014, making up half of its 24 major acquisitions worldwide.
These acquisitions have helped Palo Alto Networks expand beyond network security into areas such as cloud security, endpoint protection, DevSecOps, and identity management.
Palo Alto Networks is a global company that helps keep the digital world safe using AI-powered cybersecurity tools. It offers a wide range of solutions for network, cloud, and operational security, AI, and identity protection.
Over 70,000 customers trust the company and use threat intelligence from Unit 42 to detect and stop cyber threats. Its platforms are designed to reduce complexity, helping businesses upgrade their systems easily and stay secure while growing fast.
Read More- Caruso raises $6.6 million in Series A round led by Icehouse Ventures
