Cato Networks, a leader in Secure Access Service Edge (SASE), has made its first acquisition, purchasing Aim Security, an AI security startup founded in 2022. The acquisition, valued at an estimated $300–350 million, represents a major step in addressing the growing risks tied to generative AI adoption in enterprises.
As organizations increasingly embrace AI, a phenomenon known as “shadow AI” has emerged, with employees feeding sensitive company data into public tools like ChatGPT and Microsoft Copilot — often via personal accounts. This uncontrolled use of AI presents enormous security challenges, from exposing customer data and intellectual property to bypassing corporate compliance frameworks. Aim Security specializes in addressing these threats, offering a platform that secures employee use of public AI, internal private AI applications and agents, and the entire AI development lifecycle through AI Security Posture Management (AI-SPM).
Cato Networks will integrate Aim’s inspection technology directly into the Cato SASE Cloud Platform, enabling real-time monitoring of AI prompts, responses, agent workflows, and model outputs. This move positions Cato to deliver a comprehensive AI security layer at the network’s control point, reinforcing SASE as the standard for secure enterprise connectivity in the AI era.
The acquisition coincides with Cato’s broader momentum: the company has surpassed $300 million in annual recurring revenue (ARR) and expanded its Series G funding round with an additional $50 million, bringing its total funding to over $409 million. CEO Shlomo Kramer underscored the strategic vision, declaring that AI transformation will eclipse digital transformation as the defining force for enterprises over the next decade.
Cato’s acquisition is part of a broader AI security arms race in cybersecurity, with major players like SentinelOne, Palo Alto Networks, and Tenable also acquiring AI security firms. The deal signals both the urgency and the opportunity in safeguarding enterprises against the new attack surface created by AI tools. For businesses, it’s a reminder that AI adoption without security is unsustainable — and that securing AI must become as fundamental as securing endpoints, networks, and the cloud.
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