CrowdStrike acquires two AI security firms for nearly $500 million
Cybersecurity firm CrowdStrike is expanding its capabilities in artificial intelligence security through the acquisition of two companies: Fiddler AI and Dreadnode. This move aims to address the growing need for security solutions as businesses rapidly integrate AI models and agents into their operations.
The acquisitions will allow CrowdStrike to enhance its monitoring, testing, and coverage of AI systems. The company will pay approximately $400 million for Fiddler AI and roughly $95 million for Dreadnode, according to The Wall Street Journal.
Fiddler AI provides observability software for monitoring AI agents within organizations. Dreadnode specializes in automating security testing to identify vulnerabilities in AI models, applications, and agents before deployment.
The purchases reflect a broader trend in the cybersecurity industry, where existing security measures are struggling to keep pace with the rapid adoption of AI. Companies are increasingly utilizing AI tools and agents, creating challenges for security teams.
CrowdStrike’s new acquisitions will be integrated into its Falcon platform. Fiddler AI will become Falcon Observe, assisting clients in evaluating and monitoring AI agents. Dreadnode’s software will be incorporated into Falcon Guardian, providing security policy recommendations based on testing results.
Fiddler AI, established in 2018, has previously secured approximately $99 million in funding. Dreadnode, founded in 2023, has raised $14 million to date.
Source
“CrowdStrike to shell out nearly $500M for 2 AI security startups as the market for securing agents takes off”
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