Palo Alto Networks Acquires Koi to Secure AI Endpoints
Palo Alto Networks announced on Tuesday that it has entered into a definitive agreement to acquire Koi, an Israeli endpoint security company specializing in protecting modern software ecosystems. While financial details were not disclosed, Israeli outlets Calcalist and Globes reported the deal is valued at $400 million.
What Makes Koi Different
Koi raised $48 million in funding and built a platform designed to secure diverse software assets—including applications, operating system packages, extensions, AI models, AI agents, and containers. Its standout features include:
- Automatic discovery & inventory of software across IT environments.
- AI-driven risk engine analyzing code changes, runtime actions, update paths, and network outflows for real-time threat detection.
- Remediation tools to quarantine risky elements, roll back versions, and notify owners.
- Supply chain gateway that curates incoming software from platforms like GitHub and Hugging Face.
Strategic Fit for Palo Alto Networks
The acquisition will bolster Palo Alto’s Prisma AIRS AI security platform and Cortex XDR endpoint solution, providing unprecedented visibility into the AI attack surface. Lee Klarich, Chief Product and Technology Officer at Palo Alto Networks, emphasized. “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.”
Broader Acquisition Strategy
This move follows Palo Alto’s aggressive acquisition streak in 2025, which included:
- Chronosphere ($3.35B) – observability platform
- CyberArk ($25B) – identity security giant
- Protect AI (~$500M) – AI security firm
Together, these deals highlight Palo Alto’s ambition to build a multi-layered AI-native security stack, spanning observability, identity, and agentic endpoint protection.
Why It Matters
As enterprises increasingly rely on AI agents, plugins, and scripts, traditional endpoint security is no longer sufficient. Koi’s technology ensures that every AI component is governed, verified, and secure, helping organizations safely harness the power of AI without exposing themselves to hidden risks.
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