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

Palo Alto Networks is in talks to acquire Clutch Security, a startup that secures AI agents' access to company systems, for $500 million in cash plus additional milestone-based payouts. Clutch was last valued at $85 million and has $10 million in ARR. If the deal happens, it would be Palo Alto Networks' seventh acquisition this year. The high valuation is not an anomaly in a market focused on securing software against AI-driven attacks.