Palo Alto Networks, the $100-billion cybersecurity giant, is moving aggressively to stake its claim in the fast-growing AI security sector. On June 6, the company announced its definitive agreement to acquire Protect AI, a Seattle-based startup specializing in the protection of artificial intelligence and machine learning (ML) systems. The move underscores both the intensifying arms race among cybersecurity vendors to secure emerging AI infrastructure, and the rising threats targeting AI-based tools across various industries.

Accelerating Into AI Security

Founded in 2022, Protect AI has quickly carved out a niche as one of the leading companies addressing the so-called “ML security” problem. As organizations incorporate machine learning into business-critical workloads, from healthcare diagnostics to financial fraud detection, the resulting attack surface has grown rapidly. Protect AI offers detection and remediation technologies aimed at this new frontier.

“Our thesis is simple: AI is code, and code is exploitable,” Protect AI CEO Ian Swanson wrote in a May blog post. The company’s flagship offerings include AI Radar and ModelScan, platforms designed to identify and mitigate vulnerabilities across the ML lifecycle.

Palo Alto Networks, already a dominant force in cloud and network security, sees Protect AI as its springboard into the AI security market. “With the acquisition of Protect AI, we are significantly deepening our capabilities to secure AI pipelines and address threats specific to the entire machine learning lifecycle,” Palo Alto stated in its official announcement.

A Rising Sector

The acquisition comes amid a broader sector-wide expansion toward so-called “AI SPM” (Security Posture Management), referring to the governance, risk, and security monitoring for applications that utilize artificial intelligence. Research firm Gartner has identified AI SPM as a burgeoning category, anticipating that by 2026, more than 40% of enterprises deploying AI will also invest in AI-specific security controls.

Palo Alto Networks’ move follows on the heels of others in the space. Last year, Microsoft rolled out Azure AI Security tools, while startups including HiddenLayer and Robust Intelligence have attracted significant venture funding. The rapid adoption of large language models and generative AI tools—like those powering OpenAI’s ChatGPT—has only intensified demand for specialized defenses.

According to the company, Protect AI’s technology detects vulnerabilities such as “model poisoning,” supply chain attacks, and the exposure of sensitive data through ML artifacts—problems that traditional security tools often miss. Palo Alto Networks plans to integrate these capabilities into its Prisma Cloud platform, providing end-to-end visibility and automated remediation across data, infrastructure, and AI models.

Expanding the Cloud Security Arsenal

The financial terms of the deal were not disclosed, but market watchers see the acquisition as a strategic play rather than a revenue-driven one—at least in the short term.

“Palo Alto has a strong track record of absorbing fast-growing, innovation-focused startups in domains adjacent to their core business,” wrote CRN in its coverage of the deal, noting previous acquisitions including Bridgecrew, Expanse, and Demisto. “Protect AI adds a new dimension to its existing cloud and code security portfolio.”

Palo Alto Networks CFO Dipak Golechha highlighted the growing customer appetite for cloud, AI, and automation-focused offerings during a recent earnings call at the RSA Conference in San Francisco, an industry event where AI security emerged as a central theme.

Workforce and Market Expansion

Protect AI brings to Palo Alto Networks a team rooted in both machine learning research and enterprise security, as well as a footprint in the burgeoning Seattle AI startup community. The company supports more than 400 open source ML projects through its “AI Radar” platform and is active in developing standards for secure ML pipelines.

Seattle’s startup scene, already home to giants like Amazon and Microsoft, has become a hub for cutting-edge AI security research, and analysts see the deal as cementing Palo Alto’s presence in the region.

As part of the integration, Palo Alto Networks expects to retain much of Protect AI’s team and will accelerate work on cross-platform integrations aimed at major cloud providers.

The Stakes and Concerns

The deal highlights the convergence of two urgent trends: the proliferation of AI usage in the enterprise and the growing recognition that traditional cybersecurity is not sufficient to protect these new workloads.

Forrester analyst Allie Mellen noted in a recent report, “AI-driven applications present a new attack surface…End-to-end protection, monitoring, and explainability are becoming table stakes.”

Palo Alto Networks’ acquisition of Protect AI attempts to address this need. But challenges remain, as adversaries increasingly target not merely infrastructure, but the models and data underpinning AI-powered business processes.

For Palo Alto Networks, the purchase is both an investment in future growth and a signal to customers: As AI transforms the technology landscape, the security industry will need to adapt just as quickly. For enterprises, the message is clear—AI security is no longer optional.