CrowdStrike to buy AI security startups Fiddler and Dreadnode

The cybersecurity company is adding tools to monitor AI agents and test AI models for flaws before they go live, as businesses deploy agents at scale.

CrowdStrike has announced plans to acquire two AI security companies. Fiddler makes observability software that monitors AI agents inside enterprises. Dreadnode automates security testing to find flaws in AI models, apps and agents before deployment.

According to The Wall Street Journal, CrowdStrike is paying around $400 million for Fiddler and about $95 million for Dreadnode. Fiddler will become part of the Falcon platform as Falcon Observe, which CrowdStrike said will be generally available in the fourth quarter of its 2027 fiscal year. It will evaluate agents before deployment and trace their decisions afterwards. Dreadnode will be integrated into Falcon Guardian, feeding its test results in as security policy recommendations. Fiddler, founded in 2018, has raised about $99 million according to PitchBook. Dreadnode was founded in 2023 and has raised $14 million.

CrowdStrike said agents can cause harm without being compromised, for example by making a wrong decision with valid credentials and approved tools.

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