Palo Alto Networks in talks to buy AI agent security startup Clutch for $500M

Palo Alto Networks is in talks to acquire Clutch Security, which secures AI agents' access to company systems, for $500 million in cash plus milestone payouts, according to a source cited by TechCrunch. Clutch was last valued at $85 million and is nearing $10 million in ARR, implying roughly 50 times revenue.

Why it matters: It would be Palo Alto's seventh acquisition this year as the cybersecurity giant buys rather than builds to counter AI-driven attacks.