F5 Acquires AI Security Company CalypsoAI for $180 Million

F5 has announced its intention to acquire CalypsoAI, a startup focused on safeguarding artificial intelligence applications from cyber threats.

The all-cash deal values CalypsoAI at $180 million, more than four times the funding it raised prior to the acquisition. F5 anticipates finalizing the transaction later this month.

Listed on Nasdaq, F5 provides software solutions to enhance application security and performance for enterprises. Additionally, the company manufactures hardware devices designed to optimize network traffic in data centers. In its most recent quarter, the company reported revenue of $780 million, reflecting a 12% year-over-year increase.

CalypsoAI has developed a cybersecurity toolkit called the Inference Platform, tailored to secure AI workloads. It utilizes AI agents to generate prompts simulating potential malicious inputs hackers might use. If a prompt is blocked, the platform adapts and retries.

Businesses can leverage this software to assess whether AI workloads could be manipulated into exposing sensitive data. According to CalypsoAI, the software also identifies other vulnerabilities and tests if malicious prompts could cause AI applications to crash or slow down.

The Inference Platform features a tool named Defend, enabling businesses to implement protective measures for their applications. For instance, a bank could apply controls to prevent systems supporting chatbots from leaking credit card numbers. CalypsoAI claims that this tool not only prevents data theft but also guards against AI outputs that could breach regulatory compliance.

A third component of the platform, called Observe, monitors user interactions with AI applications and collects technical data on cybersecurity incidents, according to CalypsoAI.

"AI is redefining enterprise architecture and the attack surfaces companies must defend," said François Locoh-Donou, CEO of F5. "Traditional firewalls and point solutions can't keep up."

F5 plans to integrate the Inference Platform into its Application Delivery and Security Platform, a suite encompassing many of its core offerings. CalypsoAI's software will augment the existing cybersecurity capabilities within this portfolio. F5's tools assist enterprises in identifying application vulnerabilities, mitigating distributed denial-of-service attacks, and managing related tasks.

This acquisition comes less than a month after F5 acquired MantisNet, a network observability provider. The startup developed a platform for monitoring data traffic in cloud environments. Like CalypsoAI's software, MantisNet will also be incorporated into F5's Application Delivery and Security Platform.