Palo Alto to acquire Israeli AI security firm Koi

Palo Alto Networks announced on February 17, 2026, its intention to acquire Koi, a a Tel Aviv–based company specializing in agentic endpoint security, to address security gaps related to AI agents and tools.

The acquisition aims to enhance Palo Alto’s AI security platform, Prisma AIRS™, and its Cortex XDR® endpoint security solution by providing better visibility and control over AI-native endpoints.

Koi’s technology is designed to secure AI-driven operations, which operate with extensive access and can bypass traditional security measures.

The integration is expected to help enterprises manage risks associated with AI agents, plugins, and scripts more effectively.

Palo Alto Networks plans to discuss further details during its Q2 FY2026 earnings call scheduled for February 17, 2026.

The company offers a range of cybersecurity solutions across network, cloud, and AI security to over 70,000 customers worldwide.

🔗 Source: Palo Alto Networks

🧠 Food for thought

Implications, context, and why it matters.

Behind the deal: A reported $400 million bet on a new security category

Palo Alto Networks has not shared official terms, yet reports put the price for Koi near $400 million 1.
The buy follows a fast push into AI security after CyberArk, an identity firm that manages privileged access to critical systems, for $25 billion and Chronosphere, an observability company that provides cloud monitoring and performance analytics, for $3.35 billion 2.
Koi launched in 2024, built by a team that previously created Canonic, a SaaS (software-as-a-service) security firm Zscaler acquired in 2023 2.
The deal targets what Palo Alto Networks calls the “Agentic Endpoint,” where AI agents can act like “ultimate insiders” with broad data access on employee devices and other endpoints, often outside traditional security tools 3.

The acquisition signals a new front in the cybersecurity platform wars

Palo Alto Networks plans to shape a new product group called “Agentic Endpoint Security” through the Koi purchase 2.
Rivals such as Microsoft, CrowdStrike, and Zscaler are also racing to offer a single security suite that covers AI-driven threats 4.
Endpoint defense is shifting from catching malicious files to managing legitimate AI agents, plugins, or scripts that attackers can compromise or misuse 1.
Investors are watching whether Palo Alto Networks can fold in these features and sell them across more than 70,000 customers, while competing with other vendors pushing their own suites 4.