Palo Alto Networks has announced plans to acquire Chronosphere in a deal worth $3.35bn, marking its latest major expansion push as the cybersecurity giant continues to build out its AI-driven platform capabilities.

The acquisition will bring Chronosphere’s observability tech into Palo Alto Networks’ Cortex AgentiX platform, creating what the company claims will be a unified data and security foundation for modern AI workloads.

The agreement combines Chronosphere’s large-scale, cloud-native observability platform with Palo Alto Networks’ autonomous agent framework, aiming to deliver real-time remediation across increasingly complex digital environments.

Announcing the deal, Nikesh Arora, Chairman and CEO of Palo Alto Networks, said: “The foundational requirement for every modern AI data center is constant uptime and resilience, which demands real-time, always-on observability delivered at the right cost.

“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 organisations. And once we leverage AgentiX with Chronosphere, we will take observability from simple dashboards to real-time, agentic remediation. We are excited to not just enter this space, but to disrupt it.”

Chronosphere has gained a strong foothold among organisations operating at hyperscale. Its architecture is designed to handle vast cloud-data volumes with an emphasis on cost efficiency, resilience and always-on availability.

Palo Alto Networks said the combined offering will allow customers to detect issues, investigate root causes and execute autonomous agentic remediation on top of Chronosphere’s monitored datasets.

The integration is expected to provide deeper visibility across observability and security data at petabyte scale, while enabling cost optimisation through Chronosphere’s telemetry-pipeline and ingestion-efficiency features.

Chronosphere co-founder and CEO Martin Mao said: “We founded Chronosphere to provide scalable resiliency for the world’s largest digital organisations. Palo Alto Networks is the perfect strategic partner for our customers, partners, and employees. 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.

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“Together, we look forward to continuing to partner with industry-leading cloud and AI-native customers across the world on their mission-critical observability and security needs.”

Chronosphere reported annual recurring revenue of more than $160m as of September 2025, with triple-digit year-on-year ARR growth. The transaction is expected to close in the second half of Palo Alto Networks’ 2026 fiscal year, subject to regulatory approval.

The acquisition marks Palo Alto Networks’ second major takeover of 2025. In July, the company confirmed plans to acquire CyberArk in a deal valued at approximately $25bn.