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Cybersecurity

Palo Alto Networks and NTT DATA in $1B AI Security Alliance; Prevalent AI Raises $22M

Palo Alto Networks and NTT DATA target $1B in joint AI security business by 2029, while Prevalent AI raises $22M in its first outside capital in nine years.

AI News Feed · 2026-08-21 15:17

Palo Alto Networks-NTT DATA agreement is the first alliance of its kind that the security vendor has struck with a global systems integrator. The deal puts Palo Alto Networks' platforms in front of NTT DATA's consulting, engineering and managed services customers, with investment from both sides. The two companies launched a joint managed cybersecurity service in 2024, and Palo Alto Networks convened the Frontier AI Alliance in April with NTT DATA as a founding member; membership has since surpassed a dozen. The new agreement establishes a dedicated go-to-market model, a shared engineering roadmap and early access for NTT DATA to platform features before they ship. Palo Alto Networks is assigning forward-deployed engineers to the work.

Six areas are in scope at launch. The most prominent is the autonomous security operations center, pairing agentic AI tooling with NTT DATA's managed detection and response staff. Identity security runs on Idira, the platform Palo Alto Networks built out of its $25 billion acquisition of CyberArk Software Ltd. and released in May. AI governance, multicloud posture management, firewall modernization and a combined zero-trust and secure edge architecture round out the list. Financial services, healthcare, manufacturing and the public sector will be the first targets for joint offerings. Palo Alto Networks Chairman and Chief Executive Nikesh Arora said in the announcement that expanding the alliance “allows us to operationalize platformization at true global scale, helping enterprises eliminate legacy complexity and move fast without sacrificing safety.” NTT DATA, Inc. Chief Executive and Chief AI Officer Abhijit Dubey said AI is reshaping the threat landscape “at unprecedented speed” and customers need resilience built on AI-driven security, industry knowledge and global reach. The alliance is not exclusive, and NTT DATA continues to resell rival platforms including CrowdStrike Holdings Inc.'s Falcon. The $1 billion target covers contracts and orders on both sets of books over three years, mixing product, subscription and services revenue.

Prevalent AI's product is a data fabric that reaches into hundreds of separate enterprise systems and rebuilds the returned data as a knowledge graph that stays current. Security teams can query the graph to ask which assets, controls and identities exist across an estate and which of those nobody is watching. The company calls the graph sovereign, with customers deciding where the underlying data physically sits. Co-founder and Chief Executive Paul Stokes said large enterprises are not short of tools or data but suffer from “a shortage of context.” Security teams are being asked to make decisions across thousands of systems, controls and identities that were never designed to work together, he said. The company started in security because that is where fragmented data does the most damage.

Its customer list includes global banks, telecommunications carriers, insurers and critical national infrastructure operators. One international banking group improved incident detection by more than 80% after deploying the platform, the company said. A global insurer cut the time needed to produce executive security reports by 95%. Prevalent AI also sells managed services around the platform to help customers get live faster. The company says it has been profitable since its first customer and that annual recurring revenue more than doubled over the past 12 months. The funding will underpin a formal global go-to-market organization; selling has been founder-led until now. Sales, marketing and customer success sit under the new structure. The company also wants a bigger U.S. presence and intends to take the knowledge graph beyond security into financial crime analysis, compliance and wider operational risk.

Prevalent AI is selling into a market with no shortage of money. Enterprises are expected to spend roughly $240 billion on information security this year, according to Gartner Inc., and much of that buys more data rather than more insight. Gartner has separately warned that agentic AI projects are failing at scale, expecting more than 40% of them to be canceled by the end of 2027 due to cost, thin business value and weak risk controls.

Integrity Growth Partners provided the investment. The Santa Monica, California firm backs bootstrapped software and tech-enabled services companies and closed an oversubscribed $220 million fund in December. Managing Partner Ryan Anderson said the team has built “genuinely differentiated, AI-native technology” that the most sophisticated enterprises rely on while holding to unusual capital discipline. Anderson said agentic AI raises the stakes on data quality and depth.