Palo Alto Networks Acquires Chronosphere for Expansion

Palo Alto Networks acquires Chronosphere to enhance cloud monitoring, AI, and observability in real-time in large digital environments.

Palo Alto Networks has stated its plans to acquire Chronosphere, one of the major cloud management and monitoring organizations, with a purchase of 3.35 billion dollars, to enhance its AI-based observability and resilience services. The cybersecurity giant will incorporate Chronosphere into its own Cortex AgentiX and allow AI agents to examine cloud data, as well as identify areas of performance concern and automatically identify root causes.

According to the company, the acquisition will provide customers with better visibility for security and observability datasets on a petabyte scale and cut costs because of the optimized architecture of data ingestion by Chronosphere. Chronosphere, which has served many large digital companies, will have earned them over $160 million in recurring revenue a year by September 2025.

This takeover comes in addition to a previous deal made by Palo Alto Networks to acquire CyberArk Software at a price of 25 billion, which is supposed to close in the second half-year of the fiscal year in 2026. As CEO, Nikesh Arora pointed out, the current AI data center is based on the idea of sustained uptime, where the cloud needs to be monitored in real-time, 24/7. Also associated with the juxtaposition of AgentiX and Chronosphere is the goal of making observability go beyond dashboards to automated remediation.

Martin Mao, co-founder of Chronosphere, said that with the partnership it will be in a position to serve global cloud and AI-native organizations and make operations with mission-critical operations more reliable.

The acquisition puts Palo Alto Networks in a better position to strengthen its market presence in cloud observability with the growing demand for scalable and AI-powered performance monitoring systems.