Artificial Intelligence1 min read

CrowdStrike to shell out nearly $500M for 2 AI security startups as the market for securing agents takes off

By · Via TechCrunch · Published by Everything Blog

In short

The cybersecurity giant is addressing critical blind spots in enterprise IT by acquiring Fiddler AI for around $400 million and Dreadnode for about $95 million. Fiddler AI, which has raised approximately $99 million since its 2018 founding, offers observability software to track the behavior of enterprise agents. Dreadnode, established in 2023 with $14 million in backing, specializes in automated security testing to detect vulnerabilities in models and agents before launch. Both platforms will be folded into existing security suites to generate telemetry and feed automated policy recommendations.

Key points

  • Fiddler AI will be rebranded as Falcon Observe within the Falcon platform to provide agen…: Fiddler AI will be rebranded as Falcon Observe within the Falcon platform to provide agent activity telemetry.
  • Dreadnode will integrate into Falcon Guardian to channel automated testing data directly…: Dreadnode will integrate into Falcon Guardian to channel automated testing data directly into security policy recommendations.
  • The dual acquisition enables CrowdStrike to expand security capabilities across both the…: The dual acquisition enables CrowdStrike to expand security capabilities across both the pre-deployment testing and operational phases of enterprise agents.

Sources checked by our analysis pipeline: 1

Cybersecurity giant CrowdStrike is buying two AI security companies that expand its products to more broadly monitor, test, and cover AI models and agents, as companies across industries start rolling out AI agents and models wholesale.

CrowdStrike said it will buy Fiddler AI, which makes observability software for monitoring AI agents inside enterprises, and Dreadnode, which helps companies automate security testing specifically aimed at detecting flaws in AI models, apps and agents before they are set live.

The company is paying around $400 million for Fiddler AI, and about $95 million for Dreadnode, according to The Wall Street Journal.

The deals are happening at a time of significant upheaval in the cybersecurity space, especially as companies’ policies and processes lag behind AI adoption within their walls. Teams and individual employees alike are experimenting with AI tools, automating workflows, vibe-coding custom apps, and deploying armies of AI agents to do their bidding, which is understandably causing headaches for security teams.

CrowdStrike, whose products are used widely across enterprises and governments, is clearly trying to leverage its already significant heft and presence…

Artificial Intelligence