CrowdStrike has announced plans to acquire AI security companies Fiddler AI and Dreadnode in deals valued at approximately $495 million combined, expanding its ability to monitor and test artificial intelligence systems used by businesses. The acquisitions will add capabilities for tracking AI agent behavior, identifying vulnerabilities, and assessing security risks before and after deployment.
According to The Wall Street Journal, CrowdStrike will pay approximately $400 million for Fiddler AI and $95 million for Dreadnode. The company plans to integrate both startups’ technologies into its existing Falcon cybersecurity platform.
Fiddler AI to Expand Enterprise AI Monitoring
Founded in 2018, Fiddler AI develops observability software that helps organizations monitor AI models and agents operating within enterprise environments. Its technology provides visibility into how AI systems behave, allowing security teams to identify unexpected actions and potential risks.
Under the acquisition plan announced by CrowdStrike, Fiddler AI’s technology will become part of the Falcon platform through a new offering called Falcon Observe. The integration will allow organizations to evaluate AI agents before deployment, monitor their activities, and collect operational data for security analysis.
CrowdStrike intends to incorporate this monitoring information into its existing security infrastructure, allowing teams to investigate AI-related incidents alongside other enterprise threats. Fiddler AI has raised approximately $99 million in funding since its founding, according to PitchBook.
Dreadnode to Strengthen AI Security Testing
Dreadnode, founded in 2023, specializes in automated security testing for AI models, applications, and autonomous agents. Its software identifies potential weaknesses by testing how AI systems respond to malicious instructions and other security threats.
CrowdStrike plans to integrate Dreadnode’s technology into Falcon Guardian, its existing product for monitoring and controlling AI agent activity. The integration will convert testing results into security policy recommendations, helping organizations identify vulnerabilities before deploying AI systems.
Dreadnode has raised approximately $14 million in funding since its establishment. Its acquisition will expand CrowdStrike’s capabilities beyond monitoring active AI systems to include automated security assessments during development and deployment.
CrowdStrike Expands Security Coverage for Enterprise AI
The acquisitions follow CrowdStrike’s introduction of Falcon Guardian, which provides security teams with visibility into AI agent activity and controls to manage potential threats. The company intends to combine monitoring, automated testing, and security response capabilities within a single platform.
CrowdStrike announced both agreements on November 3, 2026, during its Fal.Con Europe conference in Barcelona. The transactions are expected to close during the company’s fourth quarter of fiscal 2027, subject to customary closing conditions.
The company plans to make Falcon Observe generally available during the same quarter. Dreadnode’s researchers will also join CrowdStrike’s Cyber Superintelligence Lab, while its testing data will support the company’s SafeMind AI security models.
Featured image credits: Wikimedia Commons
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