Crowdstrike says it will buy two AI cybersecurity startups, announces 'kill switch' for AI agents

What happened: CrowdStrike ( CRWD ) said Tuesday that it has agreed to buy two AI security startups. The combined purchase price for both is $495 million , according to the Wall Street Journal. Shares of the cybersecurity company gained more than 2% in early trading.

What's behind the move: CrowdStrike said it has signed an agreement to acquire Fiddler AI, a startup that develops tools that help companies track their AI systems.

The company also announced an agreement to acquire Dreadnode, a startup that develops tools to test AI systems for security vulnerabilities. CrowdStrike said the technology will allow its Falcon platform to continuously scan AI models, applications, and agents for potential security weaknesses before they are deployed.

What else you need to know: The company also announced the AI Kill Switch in Falcon Guardian , giving security teams control over AI agents. If an agent deviates from its intended behavior, a defender can terminate it wherever it runs, prevent it from launching again, and cut off its enterprise network access.

"AI safety is how you get the full benefit of AI. When you deploy agents with a kill switch, you stay in control," said George Kurtz, CEO and founder of CrowdStrike, in a press release.

Despite concerns earlier this year that AI would disrupt traditional business models, cybersecurity companies have instead benefited from the rise of agentic AI, which is driving increased demand for verification and authentication.