Cloud networking company Cato Networks Ltd. announced today that it has acquired Israeli artificial intelligence security company Aim Security Ltd. for an undisclosed sum reported to be $350 million.

Founded in 2022, Aim Security focuses on protecting how employees, applications and organizations interact with AI by delivering visibility, control and governance over AI use. The company’s platform integrates directly into enterprise environments to allow businesses to use AI confidently while addressing security and compliance risks.

Aim Security secures employee use of public AI applications such as ChatGPT, Microsoft Copilot, Cursor and other AI agents by monitoring and protecting end-user AI interactions. The platform uncovers shadow AI usage, mitigates risks and ensures organizations can safely expand AI adoption, allowing companies to unlock AI use cases without sacrificing data protection or compliance they often legally require.

The company also provides protection for private AI applications and agents, with its AI Firewall defending internal AI systems against runtime attacks and enforcing corporate security and governance policies. Aim Security says that it ensures that all interactions between users, AI agents and AI models are governed and secured to prevent data leaks and policy violations, whether on-premises or in the cloud.

Along with computational protection, Aim also has a research team that actively identifies emerging threats in AI. Aim’s researchers were the first to discover EchoLeak, the first reported zero-click AI vulnerability in Microsoft 365 Copilot, in June.

With its credentials in AI security, Aim Security is intended to allow Cato Networks to extend its SASE Cloud Platform with new AI security capabilities. Aim’s capabilities will be used by Cato Networks to address the complexity and unstructured nature of AI interactions, as well as the evolving AI attack surface, to detect and stop threats, attacks, risky or anomalous access and data breaches.

“AI transformation will eclipse digital transformation as the main force that will shape enterprises over the next decade,” said Cato Networks co-founder and Chief Executive Shlomo Kramer. “With the acquisition of Aim Security, we’re turbocharging our SASE platform with advanced AI security capabilities to secure our customers’ journey into the new and exciting AI era.”

Coming into its acquisition, Aim Security had raised $28 million over two rounds, including a Series A round of $18 million in June 2024. Investors in the company included Canaan Partners Management, YL Ventures Ltd. and Cyber Club London Ltd.

Along with the acquisition of Aim Security, Cato Networks also announced today that it has extended its last funding round , a Series G round from June, with an additional $50 million in investment. The additional funding takes the amount raised in the round to $409 million.

Photo: Aim Security