CrowdStrike said it will buy Fiddler AI, which makes observability software for monitoring AI agents inside enterprises, and Dreadnode, which helps companies automate security testing aimed at detecting flaws in AI models, apps and agents before they are put live. The company is paying around $400 million for Fiddler AI and about $95 million for Dreadnode, according to The Wall Street Journal.
The acquisitions expand CrowdStrike's products to more broadly monitor, test and cover AI models and agents at a time when companies across industries are rolling out AI agents and models wholesale.
Fiddler AI, founded in 2018, has raised about $99 million to date, according to PitchBook. It will become part of CrowdStrike's Falcon platform as Falcon Observe, where it is intended to help clients evaluate agents before they are deployed, understand their actions and monitor what they do, feeding that information as telemetry into the wider platform.
Dreadnode, founded in 2023 and having raised $14 million so far, will be integrated into Falcon Guardian, CrowdStrike's detection and response controls that help companies see what agents are doing on their devices. The startup's testing results will feed into the product as security policy recommendations.
The deals land as companies' policies and processes lag behind AI adoption within their walls. Teams and individual employees are experimenting with AI tools, automating workflows, vibe-coding custom apps and deploying armies of AI agents, which is causing headaches for security teams.
CrowdStrike, whose products are used widely across enterprises and governments, is not alone in chasing the market. Several startups and cybersecurity vendors are raising tens of millions in funding, with most of these approaches based on the conviction that existing security software is not enough to monitor and control AI tools, connectors or usage.
Analysis
Why This Matters
- Companies adopting AI agents need ways to monitor and test them, and CrowdStrike is buying that capability rather than building it, a sign of where security budgets are heading.
- For existing CrowdStrike customers, the two startups' technology will surface inside Falcon Observe and Falcon Guardian, tying AI oversight to security tooling many enterprises and governments already run.
- Nearly $500 million for two young companies suggests competition for AI security startups is pushing valuations up.
Background
CrowdStrike is a US cybersecurity company whose cloud-delivered products are used widely by enterprises and governments. AI agents, software that carries out tasks on a user's behalf, are being adopted inside companies and raise questions about oversight and pre-deployment testing that traditional security tools were not built to answer. CrowdStrike has itself been building detection and response controls, dubbed Falcon Guardian, to help companies see and understand what agents are doing on their devices.
What to Watch
- Whether the two deals close, and how quickly Fiddler AI and Dreadnode products are folded into Falcon Observe and Falcon Guardian.
- Whether CrowdStrike's existing enterprise and government customers buy AI observability and testing as add-ons.
- Further acquisitions or funding rounds in AI security as rivals compete for similar tools.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedCrowdStrike is to buy two AI security startups for nearly $500 million.TechCrunch: “CrowdStrike to shell out nearly $500M for 2 AI security startups”
- SupportedCrowdStrike said it will buy Fiddler AI and Dreadnode.TechCrunch: “CrowdStrike said it will buy Fiddler AI, which makes observability software for monitoring AI agents inside enterprises, and Dreadnode”
- SupportedFiddler AI makes observability software for monitoring AI agents inside enterprises.TechCrunch: “Fiddler AI , which makes observability software for monitoring AI agents inside enterprises”
- SupportedDreadnode helps companies automate security testing to detect flaws in AI models, apps and agents before they go live.TechCrunch: “Dreadnode , which helps companies automate security testing specifically aimed at detecting flaws in AI models, apps and agents before they are set live.”
- SupportedCrowdStrike is paying around $400 million for Fiddler AI, according to The Wall Street Journal.TechCrunch: “The company is paying around $400 million for Fiddler AI, and about $95 million for Dreadnode, according to The Wall Street Journal .”
- SupportedCrowdStrike is paying about $95 million for Dreadnode, according to The Wall Street Journal.TechCrunch: “The company is paying around $400 million for Fiddler AI, and about $95 million for Dreadnode, according to The Wall Street Journal .”
- SupportedThe acquisitions broaden CrowdStrike's offerings for monitoring and testing AI models and agents.TechCrunch: “Cybersecurity giant CrowdStrike is buying two AI security companies that expand its products to more broadly monitor, test, and cover AI models and agents”
- SupportedFiddler AI was founded in 2018.TechCrunch: “Founded in 2018, Fiddler AI has raised a total of about $99 million to date, according to PitchBook.”
- SupportedFiddler AI has raised about $99 million to date, according to PitchBook.TechCrunch: “Founded in 2018, Fiddler AI has raised a total of about $99 million to date, according to PitchBook.”
- SupportedFiddler AI will become part of CrowdStrike's Falcon platform as Falcon Observe.TechCrunch: “Fiddler AI is going to be part of CrowdStrike’s Falcon platform as Falcon Observe”
- SupportedDreadnode has raised $14 million so far.TechCrunch: “Dreadnode, founded in 2023, has raised $14 million so far.”
- SupportedDreadnode will be integrated into Falcon Guardian, with its testing results feeding in as security policy recommendations.TechCrunch: “Dreadnode, meanwhile, will be integrated into the Falcon Guardian product , to which the startup’s software will feed its testing results as security policy recommendations.”