CrowdStrike is acquiring Fiddler AI for roughly $400 million and Dreadnode for about $95 million, according to The Wall Street Journal. The two deals total nearly $500 million and expand CrowdStrike's ability to monitor, test, and secure AI models and agents as enterprises deploy AI tools at scale.
Fiddler AI makes observability software for monitoring AI agents inside companies. The startup, founded in 2018, has raised about $99 million to date according to PitchBook. It will integrate into CrowdStrike's Falcon platform as Falcon Observe, helping clients evaluate agents before deployment, understand their actions, and monitor their behavior.
Dreadnode automates security testing to detect flaws in AI models, apps, and agents before they go live. Founded in 2023, the startup has raised $14 million so far. Dreadnode will integrate into CrowdStrike's Falcon Guardian product, feeding testing results as security policy recommendations.
The acquisitions reflect a broader shift in cybersecurity as companies roll out AI agents faster than their security policies can keep pace. CrowdStrike said it has been building Falcon Guardian controls to help enterprises see and understand what agents do on their devices. The company is leveraging its existing enterprise presence to capture share in what it sees as a rapidly growing market for AI security tools.