Palo Alto Networks to Acquire Koi Security for Reported $400 Mn to Bolster AI-Era File Security
Koi’s platform is designed to monitor and control a wide range of software assets beyond traditional binaries
Palo Alto Networks has agreed to acquire Koi Security, a Tel Aviv-based startup focused on preventing risky file downloads across enterprise environments, as organisations grapple with new threats tied to AI tools and software supply chains.
The companies announced the deal without disclosing terms, though reports value the transaction at about $400 million. Koi previously raised $48 million from investors, including Battery Ventures.
Amit Assaraf, CEO and Co-Founder of Koi, said, "We founded Koi to secure the next frontier of risk. In an agentic-first world, traditional solutions are blind. Joining forces with Palo Alto Networks will allow us to scale our technology to the world's largest organisations, delivering protection that makes work on the modern AI-native endpoint secure by design."
Koi’s platform is designed to monitor and control a wide range of software assets beyond traditional binaries, including scripts, browser extensions, plug-ins and AI training datasets.
When employees attempt to download files from third-party sites, the system can replace download buttons with approval requests, allowing administrators to assess potential risks before installation.
The platform evaluates file safety using multiple signals, such as the developer’s reputation, code analysis and runtime behavior. It also monitors updates to files—often a key attack vector—delaying installations so security teams can review changes.
Once downloaded, files continue to be monitored through a threat-detection engine that enables administrators to isolate, remove or roll back suspicious items.
Palo Alto Networks plans to integrate Koi’s technology into its Cortex XDR and Prisma AIRS platforms to enhance protection across endpoints, cloud workloads and AI systems.
Lee Klarich, Chief Product & Technology Officer at Palo Alto Networks, said, "By acquiring Koi, we will be closing this gap and setting a new standard for endpoint security. We will give our customers the visibility and control required to safely harness the power of AI—ensuring that every agent, plugin, and script is governed, verified, and secure."
