Palo Alto Networks Snags Israeli AI Security Startup Koi for $400M
Cybersecurity giant Palo Alto Networks is acquiring Koi Security, an AI-powered endpoint security startup, for roughly $400 million.
Palo Alto Networks has struck a deal to buy Koi Security, an Israeli endpoint security firm, for approximately $400 million. That's a hefty return for a company that pulled in just $48 million across two funding rounds, according to PitchBook data.
So what's worth the premium? Koi built a software engine leveraging large language models and AI agents to hunt down malware and sniff out application vulnerabilities. Essentially, it's AI doing the tedious security work that traditional tools struggle with.
For Palo Alto, the acquisition bolsters its endpoint security arsenal with cutting-edge AI capabilities — a space where every major cybersecurity player is scrambling to stake a claim. The roughly 8x multiple on total capital raised signals just how aggressively the industry is pricing AI-native security tech right now.