Palo Alto Networks Acquires Koi Security for $400M to Boost AI Endpoint Protection

Palo Alto Networks to Acquire Koi Security, Enhancing AI Endpoint Protection

Palo Alto Networks has announced its definitive agreement to acquire Koi Security, a pioneering firm in Agentic Endpoint Security, for approximately $400 million. This strategic move aims to bolster Palo Alto’s capabilities in securing AI-driven endpoints, addressing the emerging challenges posed by autonomous tools and agents that operate with deep system privileges, often bypassing traditional security mechanisms.

The Rise of Agentic Endpoints

As artificial intelligence becomes increasingly integrated into enterprise workflows, AI agents and automation frameworks are creating a new layer of attack surface known as the Agentic Endpoint. These agents possess the ability to read, modify, and execute tasks across sensitive systems, making them potential targets for exploitation if not properly secured. Attackers are now leveraging vulnerabilities in AI frameworks, such as authentication bypasses and API vulnerabilities, to compromise these trusted automation tools.

Addressing the Security Gap

Traditional endpoint protection solutions, designed primarily to block malicious executables, often struggle to detect threats associated with AI agents. This limitation has created a critical blind spot for enterprises operating in AI-native environments. Koi Security’s technology directly addresses this issue by providing comprehensive visibility, governance, and protection for every AI agent, plugin, and script within an organization’s digital ecosystem.

Integration and Future Prospects

Following the acquisition, Koi’s capabilities will be integrated into Palo Alto Networks’ Prisma AIRS™ platform, extending its coverage to AI operations. Additionally, the integration will enhance Cortex XDR® by providing real-time insights into the AI attack surface, thereby improving security policy enforcement, anomaly detection, and malware prevention. This unified approach aims to equip security teams with a comprehensive view of endpoint and agent behavior, enabling more effective threat mitigation.

Leadership Perspectives

Lee Klarich, Chief Product and Technology Officer at Palo Alto Networks, emphasized the significance of this acquisition, stating, AI agents and tools are the ultimate insiders. They have full access to your systems and data but operate entirely outside the view of traditional security controls. By acquiring Koi, we will be closing this gap and setting a new standard for endpoint security. We will give our customers the visibility and control required to safely harness the power of AI—ensuring that every agent, plugin, and script is governed, verified, and secure.

Amit Assaraf, CEO and Co-founder of Koi, expressed enthusiasm about the partnership, saying, We founded Koi to secure the next frontier of risk. In an agentic-first world, traditional solutions are blind. Joining forces with Palo Alto Networks will allow us to scale our technology to the world’s largest organizations, delivering protection that makes work on the modern AI-native endpoint secure by design.

Broader Implications

This acquisition reinforces Palo Alto Networks’ position as a leader in AI-powered cybersecurity and aligns with the company’s broader vision to protect enterprises across networks, clouds, and intelligent systems. By integrating Koi’s innovative solutions, Palo Alto Networks aims to provide its customers with the tools necessary to navigate the complexities of AI-driven environments securely.