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

SecurityNovember 4, 20261 min read

CrowdStrike, a big cybersecurity company, plans to buy two small AI security startups, Fiddler AI and Dreadnode. The deals total nearly $500 million and help CrowdStrike watch and test AI agents.

What happened

CrowdStrike said it will buy Fiddler AI and Dreadnode. Fiddler AI makes tools that watch AI agents inside companies. Dreadnode helps companies test AI models, apps, and agents for flaws before they go live. Fiddler AI will become part of CrowdStrike's Falcon platform as Falcon Observe. Dreadnode will be added to Falcon Guardian, CrowdStrike's product for seeing what AI agents do on devices.

Key numbers

CrowdStrike is paying about $400 million for Fiddler AI.
CrowdStrike is paying about $95 million for Dreadnode.
Fiddler AI was founded in 2018 and has raised about $99 million in total.
Dreadnode was founded in 2023 and has raised $14 million so far.
Source for the prices: The Wall Street Journal. Source for the funding totals: PitchBook.

Why AI agents need security

Many companies now use AI models and AI agents. An AI agent is a program that can carry out tasks on its own. Employees try new AI tools and build their own apps quickly. Company rules often fall behind this fast change, so security teams have a hard time keeping up. Many startups are trying to solve this problem too.

Why it matters

This deal shows that big security companies see AI security as a growing market. CrowdStrike is using its size and wide use across businesses and governments to get a larger share of it. For companies, it means that AI tools may soon be watched and tested in the same way as other computer systems.

What to watch

Whether the deals close as planned.
How CrowdStrike combines Fiddler AI with its Falcon platform.
How Dreadnode's testing results turn into security rules in Falcon Guardian.
Whether other security companies buy or build similar AI tools.

Glossary

CrowdStrike: A large cybersecurity company that protects computers and networks for businesses and governments.
Fiddler AI: A startup that makes software to watch and check AI agents used inside companies.
Dreadnode: A startup that automates security tests to find flaws in AI models, apps, and agents.
Falcon Guardian: CrowdStrike's product that helps companies see and control what AI agents do on their devices.
Falcon Observe: The name Fiddler AI will use inside CrowdStrike's Falcon platform for monitoring AI agents.
AI agent: A computer program that can carry out tasks on its own, often with little human help.

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