Palo Alto Networks to acquire Seattle cybersecurity startup Protect AI

Cybersecurity giant Palo Alto Networks plans to acquire Protect AI, a Seattle startup founded in 2022 that helps companies monitor the various layers and components of machine learning systems. Terms of the deal, announced Monday, were not disclosed. The deal is expected to close later this year. Sources familiar with the deal say it was valued north of $500 million. Protect AI raised a $60 million Series B round in 2024, at a reported valuation of $400 million. Palo Alto, which has a market capitalization close to $120 billion, said the acquisition will help expand its capabilities “to protect the… Read More

Apr 28, 2025 - 17:18

Palo Alto Networks to acquire Seattle cybersecurity startup Protect AI

From left: Protect AI CTO Badar Ahmed; President Daryan Dehghanpisheh; and CEO Ian Swanson. (Protect AI Photo)

Cybersecurity giant Palo Alto Networks plans to acquire Protect AI, a Seattle startup founded in 2022 that helps companies monitor the various layers and components of machine learning systems.

Terms of the deal, announced Monday, were not disclosed. The deal is expected to close later this year.

Sources familiar with the deal say it was valued north of $500 million.

Protect AI raised a $60 million Series B round in 2024, at a reported valuation of $400 million.

Palo Alto, which has a market capitalization close to $120 billion, said the acquisition will help expand its capabilities “to protect the dynamic new attack surface created by the explosion of AI.” The company also announced a new AI security platform on Monday called Prism AIRS.

Founded by former engineering leaders at Amazon and Oracle, Protect AI serves Fortune 500 companies across finance, healthcare, and government sectors.

The startup is riding tailwinds from the rising adoption of AI as enterprises look for ways to secure new technologies. Nearly three-fourths of companies say they had an AI-related breach in 2024, according to a report from HiddenLayer.

Morgan Stanley projects that the market for AI-based cybersecurity products will surge to $135 billion by 2030.

Protect AI is ranked No. 10 on the GeekWire 200, our list of top privately held tech startups in the Pacific Northwest.

“When we started Protect AI, our mission was clear — to help organizations secure the most important technology of our time: AI,” CEO and co-founder Ian Swanson said on LinkedIn. “Thanks to the incredible team at Protect AI, the support of our customers, partners, and investors, and the growing urgency around AI security, we’ve built category leading solutions.”

Protect AI acquired Laiyer AI and SydeLabs last year, and previously swooped up Rebuff and Huntr.

The company employs around 120 people across Seattle, Berlin, and Bangalore, according to LinkedIn.

The company’s investors include Acrew Capital, Aviso Ventures, boldstart ventures, Evolution Equity Partners, Knollwood Capital, Pelion Ventures, 01 Advisors, Samsung, StepStone Group, and Salesforce Ventures.

Swanson previously founded Sometrics, a virtual currency platform and in-game payments provider. It was acquired by American Express in 2011. After that, he founded DataScience, a cloud workspace platform that was acquired by Oracle in 2018. Swanson also held AI leadership roles at AWS and Oracle.

Swanson co-founded Protect AI with Badar Ahmed, a former engineering leader at Oracle and DataScience, and Daryan Dehghanpisheh, a former leader at AWS.

The company’s founders and employees are expected to join Palo Alto once the deal closes.

A growing cohort of cybersecurity startups are based in the Seattle region or have a significant presence in the area, including Chainguard, Dropzone AI, Oleria, SpecterOps, Staris, and several others.