Palo Alto Networks Buys AI IT Automation Startup Console

Palo Alto Networks paid $500 million to acquire the AI automation startup Console, according to sources cited by TechCrunch. The cybersecurity firm announced the deal on Tuesday but did not disclose its financial terms.

Console is a two-year-old company that uses AI agents to handle routine IT help desk tasks. Founded in 2024, the startup had raised $29 million from investors including Thrive Capital and DST Global. Prior to the acquisition, PitchBook data listed the firm's valuation at $157 million.

The Acquisition and Investor Returns

The $500 million purchase price, paid in a mix of cash and stock, represents a rapid return for Console's backers. These investors included SV Angel, Abstract Ventures, and notably, Palo Alto Networks' own CEO, Nikesh Arora, who participated as an angel investor before the sale. Palo Alto Networks declined to comment on the deal specifics when contacted.

Integration into Cortex AI Platform

Palo Alto Networks stated it will integrate the newly acquired company into its Cortex AI security platform. Cortex uses artificial intelligence to automatically detect and neutralize cyber threats. The addition of this technology is intended to give security teams new tools.

The startup's agentic functionality will allow those teams to investigate and resolve security alerts using natural language commands. In a statement, CEO Nikesh Arora said this integration gives Cortex "the arms and legs to deliver autonomous security outcomes across the entire enterprise."

Console's Technology and Market Position

Founded by Andrei Serban, the firm automated IT service management tasks without direct human involvement. Its software handled password resets, granted employee access to applications like Figma and Miro, and performed routine troubleshooting. The startup's customer list included companies such as Ramp, Flock Safety, and Scale AI.

As a startup, it competed primarily with another company called Serval, a challenger to ServiceNow. Serval reached a $1 billion valuation after a $75 million funding round led by Sequoia last December. One investor, who is not a backer of Serval, told TechCrunch that this acquisition now leaves Serval as the category-leader-to-watch among startups automating IT service management.

Palo Alto's 2026 Acquisition Spree

The purchase marks Palo Alto Networks' seventh acquisition in 2026, according to PitchBook data. The cybersecurity giant has been actively buying venture-backed companies this year. Other notable acquisitions include the observability platform Chronosphere and the cybersecurity startup Koi.

These purchases highlight a strategic push by the established security firm to absorb innovative AI and automation capabilities. The integration aims to advance its vision of autonomous, AI-driven enterprise security operations.