Databricks acquires Panther Labs as part of its cybersecurity initiative.

      Databricks has a fresh approach for the AI era of cyberattacks: combatting fire with fire. The $134 billion data and AI firm announced its intention to acquire Panther Labs, a cybersecurity startup, as it aims to penetrate a market primarily led by Splunk and CrowdStrike. This marks Databricks' third acquisition in the security sector, underscoring its serious commitment to the area. The companies have not revealed the acquisition price.

      The reasoning behind this strategy is straightforward, albeit concerning. AI has drastically reduced the time it takes for attackers to identify and exploit vulnerabilities in software. These attackers are now leveraging AI to detect weaknesses in cloud and SaaS systems at a pace that outstrips human defenders' responses.

      "If they are going to strike with agents, you must defend using agents," Databricks CEO Ali Ghodsi stated to Reuters. He emphasized that the traditional method of handling security alerts is "dead."

      Panther is designed to address this challenge. It consolidates a company's security data in one location, enabling AI agents to automatically manage alerts and investigate threats. It is already equipped to protect AI-native environments, highlighting a growing urgency to safeguard the increasing number of AI agents within large organizations. Anthropic is among its clients.

      Databricks refers to this new offering as a "security lakehouse," with a clear objective: to replace the outdated SIEM, the security-monitoring software that companies like Splunk have marketed for years. In March, Databricks released its own version called Lakewatch. The addition of Panther provides a developed platform and a team that has dedicated years to creating cloud-native threat detection solutions.

      This acquisition follows a trend where Databricks is systematically entering various verticals, with security being the latest focus. Panther adds to its previous security acquisitions, which include Antimatter and SiftD.ai.

      There is an interesting backstory to this acquisition. Ghodsi revealed that he met Panther's founder, Jack Naglieri, in 2021, took him out for dinner, and proposed an acquisition, which Naglieri declined, choosing instead to continue building the company. "That was a wise decision for him," Ghodsi commented, noting that Naglieri's valuation has since increased. Panther's most recent valuation was $1.4 billion, following a $120 million funding round in 2021, although this amount is not the price Databricks is currently paying. Now, five years later, with Databricks’ own valuation rising and an IPO on the horizon, they have finally received the green light for the acquisition. The deal is still pending regulatory approval.