Palo Alto Networks completes Chronosphere acquisition to unify observability and security for the AI era

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Palo Alto Networks completes Chronosphere acquisition to unify observability and security for the AI era

Palo Alto Networks® (NASDAQ: PANW), a global leader in cybersecurity, has announced the completion of its acquisition of Chronosphere, marking a significant step toward unifying observability and security to support AI-driven digital operations.

As enterprises increasingly depend on artificial intelligence to run critical systems, protect assets, and accelerate growth, access to trusted, real-time, high-quality data has become essential. The acquisition directly addresses one of the AI era’s core challenges: the lack of visibility and security across massive, fast-moving data volumes that underpin modern digital businesses.

Real-time visibility at AI scale

Chronosphere, recognised as a Leader in the 2025 Gartner® Magic Quadrant™ for Observability Platforms, was purpose-built for cloud-native environments operating at scale. While traditional monitoring tools struggle under modern workloads, Chronosphere delivers deep, end-to-end visibility across applications, infrastructure, and AI systems.

With this acquisition, Palo Alto Networks aims to redefine how organisations operate at the speed of AI, enabling customers to gain real-time insight into their digital ecosystems while maintaining strict control over data cost and value.

AI-driven security and autonomous remediation

The planned integration of Palo Alto Networks Cortex® AgentiX™ with Chronosphere’s cloud-native observability platform will allow customers to deploy AI agents capable of detecting and resolving security and IT issues automatically, before they affect business operations or customer experience.

The combined solution provides essential context across AI models, prompts, users, and system performance, enabling organisations to move beyond manual troubleshooting toward autonomous remediation. The company emphasised that AI security without deep observability is ineffective, and that the acquisition closes this critical gap.

Leadership perspectives

Nikesh Arora, Chairman and CEO of Palo Alto Networks, said enterprises are seeking fewer vendors, deeper partnerships, and platform-based solutions they can trust for mission-critical operations.

“Chronosphere accelerates our vision to be the indispensable platform for securing and operating the cloud and AI,” Arora said. “Great security starts with deep visibility into all your data, and Chronosphere provides that foundation for our customers.”

Martin Mao, Co-founder and CEO of Chronosphere, who will join Palo Alto Networks as Senior Vice President and General Manager of Observability, said the combination expands Chronosphere’s reach globally.

“Together, we are delivering a new standard where observability, security, and AI converge, giving organisations greater control over their most valuable asset: data,” Mao said.

Optimising data efficiency and cost

The Chronosphere Telemetry Pipeline will remain available as a standalone solution, enabling organisations to reduce the so-called ‘data tax’ associated with modern security operations. Acting as an intelligent control layer, the pipeline can filter low-value data, reducing telemetry volumes by 30 percent or more, while requiring up to 20 times less infrastructure than legacy alternatives.

This capability is expected to play a key role in Palo Alto Networks’ Cortex XSIAM® strategy, allowing customers to scale their security posture without proportionally increasing costs as they transition to autonomous, AI-driven operations.