Palo Alto Networks acquires file security startup Koi for reported $400M

The acquisition aims to bolster Palo Alto's Cortex XDR and Prisma AIRS platforms with Koi's file security technology.

Published on Feb. 19, 2026

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Palo Alto Networks has acquired Koi Security, a startup that helps enterprises prevent employees from downloading risky files. The reported $400 million deal will integrate Koi's technology into Palo Alto's Cortex XDR and Prisma AIRS platforms to enhance their file security capabilities.

Why it matters

The acquisition highlights the growing importance of securing non-binary software assets like scripts, code editor plug-ins, and AI training datasets, which can pose security risks if left unmanaged. Koi's technology helps organizations govern these 'agentic tools' and eliminate blind spots in their AI-native ecosystems.

The details

Koi's platform can block risky file downloads, detect updates to open-source components, and monitor downloaded files for threats. It evaluates factors like a file's developer history and code behavior to determine if a download should be approved. Koi also provides remediation features to remove, isolate or roll back risky files.

  • Palo Alto Networks announced the acquisition on February 17, 2026.

The players

Palo Alto Networks

A cybersecurity company that provides firewall, cloud security, and endpoint protection products and services.

Koi Security

A Tel Aviv-based startup that developed a cybersecurity platform focused on securing non-binary software assets like scripts, code editor plug-ins, and AI training datasets.

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What they’re saying

“AI agents 'can autonomously discover, invoke and even install additional components at machine speed, accelerating risk across an already expanding, largely unmanaged software layer.'”

— Hadar Oren, Senior Vice President of Product Management for Cortex at Palo Alto Networks (Blog post)

What’s next

Palo Alto Networks plans to integrate Koi's technology with its Cortex XDR and Prisma AIRS platforms to enhance their file security capabilities.

The takeaway

The Koi acquisition underscores the growing need for comprehensive file security solutions that can protect enterprises from the risks posed by non-binary software assets, which are increasingly being used in AI-driven applications and environments.