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

CrowdStrike agreed to acquire AI observability startup Fiddler AI and AI security testing firm Dreadnode for a combined total of nearly $500 million, the company said. The deals expand CrowdStrike's platform into monitoring and securing AI agents, a market the company said is taking off as enterprises deploy autonomous AI systems. Fiddler AI provides observability software for AI agents, while Dreadnode automates AI security testing. The acquisitions signal consolidation in the emerging AI security segment as major cybersecurity vendors race to add agent-focused capabilities. Terms of each deal were not disclosed; investors will watch for integration details and whether rivals such as Palo Alto Networks and Microsoft respond with competing AI security acquisitions.