Palo Alto Networks has signed a definitive agreement to acquire Chronosphere, a next-generation observability platform built to handle the scale and complexity of modern AI workloads. The $3.35 billion cash-and-equity transaction marks one of the company’s largest acquisitions to date and underscores its strategy to integrate observability, security, and AI-driven automation into a unified enterprise platform.
The company will combine Chronosphere’s cloud-native telemetry and analytics capabilities with its own AI-agent platform, Cortex AgentiX, aiming to shift observability from traditional monitoring toward real-time, autonomous remediation. The goal is to help organizations maintain continuous uptime and reliability as AI data centers grow in scale.
“The foundational requirement for every modern AI data center is constant uptime and resilience,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “Chronosphere was built to scale for the data demands of the AI era from day one, which is why it is chosen by leading AI-native and born-in-the-cloud organizations.”
Chronosphere co-founder and CEO Martin Mao said the acquisition positions the combined company to address the growing complexity of distributed systems. “It allows us to combine our disruptive observability platform with the world’s best security company, accelerating our momentum in solving the most complex data and resiliency challenges.”
The acquisition highlights Palo Alto Networks’ broader ambition to become a central partner for enterprises operating in increasingly AI-driven digital environments, where security, performance, and automation converge.
