Cybersecurity giant Palo Alto Networks is negotiating a cash acquisition of Israeli AI agent security startup Clutch Security for approximately $500 million, potentially including milestone payments. The deal, first reported by The Information and cited by TechCrunch, remains unannounced and may not be finalized, with neither party providing comment. Clutch specializes in securing AI agents' access to enterprise systems and has generated annual recurring revenue close to $10 million. The startup was valued at roughly $85 million during its Series A funding round in January 2025. This potential acquisition highlights the growing strategic interest in protecting autonomous AI workflows within corporate infrastructure.