CrowdStrike to Acquire Fiddler AI and Dreadnode in Deals Worth Nearly $500M
CrowdStrike plans to acquire Fiddler AI for about $400M and Dreadnode for roughly $95M, folding them into Falcon Observe and Falcon Guardian.
The story in focus
CrowdStrike said it will acquire Fiddler AI for around $400 million and Dreadnode for about $95 million, according to The Wall Street Journal. Fiddler AI will join the Falcon platform as Falcon Observe, while Dreadnode will be integrated into Falcon Guardian.
- CrowdStrike will pay around $400 million for Fiddler AI and about $95 million for Dreadnode, per The Wall Street Journal.
- Fiddler AI provides observability software for monitoring AI agents inside enterprises.
- Dreadnode automates security testing for AI models, apps, and agents before deployment.
- Fiddler AI will become part of CrowdStrike's Falcon platform as Falcon Observe.
- Dreadnode will be integrated into Falcon Guardian, feeding testing results as policy recommendations.
Acquisition Details
CrowdStrike announced plans to acquire two AI security companies, Fiddler AI and Dreadnode, as it expands products for monitoring, testing, and covering AI models and agents. The company will pay around $400 million for Fiddler AI and about $95 million for Dreadnode, according to The Wall Street Journal.
Fiddler AI, founded in 2018, has raised about $99 million to date, according to PitchBook. Dreadnode, founded in 2023, has raised $14 million.
Product Integration
Fiddler AI will be folded into CrowdStrike's Falcon platform as Falcon Observe. Its software is intended to help clients evaluate agents before deployment, understand their actions, and monitor their activity, feeding that data as telemetry into the broader platform.
Dreadnode will be integrated into the Falcon Guardian product. Its automated security testing results will feed into security policy recommendations. CrowdStrike has been building detection and response controls under Falcon Guardian to help companies see what agents do on their devices.
Market Context
The deals come as companies increasingly deploy AI agents and models, with security policies and processes often lagging behind adoption. CrowdStrike, whose products are used across enterprises and governments, is seeking to capture a share of this growing market. Other startups and cybersecurity vendors are also raising funds to address AI security gaps.
What will happen to Fiddler AI and Dreadnode after CrowdStrike acquires them?
Fiddler AI will become part of CrowdStrike's Falcon platform as Falcon Observe, and Dreadnode will be integrated into the Falcon Guardian product, where its testing results will feed security policy recommendations.
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