Palo Alto Networks has announced its intent to acquire the Israeli startup Koi, a company focused on developing agentic endpoint security solutions. Though the financial specifics of the deal remain undisclosed, reports suggest it is valued at approximately $400 million. This acquisition comes just a week after Palo Alto completed its purchase of CyberArk, further solidifying its AI security portfolio.
Koi was founded in 2024 by members of Israel’s elite cyber warfare unit, Unit 8200. The startup specializes in safeguarding what they term "non-traditional, non-binary" software components, which include code packages, scripts, and local servers. This type of software is often deployed by employees and developers without centralized oversight, making it difficult to monitor and secure using traditional endpoint security tools.
Hadar Oren, senior vice president of product management for Cortex at Palo Alto Networks, highlighted the challenges posed by AI agents in a recent blog post. These agents typically operate with user credentials, allowing them to perform sensitive actions across systems. If compromised, they can become severe security threats. Oren advocates for enhanced agentic endpoint security as a crucial need for enterprises moving forward.
The acquisition of Koi is set to integrate its technology with Palo Alto’s existing AI security platform, Prisma AIRS, which helps organizations scan AI models for vulnerabilities and manage security postures related to AI usage. Jonathan Ho, a research analyst at William Blair Equity Research, noted that this acquisition is part of Palo Alto’s broader strategy to enhance AI security by extending its controls and visibility over AI agents and nontraditional software.
The Koi purchase fits within a larger trend, as Palo Alto is positioning itself to address the evolving challenges in AI security across enterprise environments. The company’s commitment to securing both human and machine identities is underscored by another recent acquisition and reflects its approach to managing risks associated with AI on endpoints.
For more details on Palo Alto Networks and its recent acquisitions, see the official announcements:
