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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Pan Also our networks manages to fight the narrative of

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Speaker 2: a downward.

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Speaker 1: Draft in the markets. We're up a quarter percent.

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Speaker 2: And look we're seeing the cybersecurity leader announced its intent.

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Speaker 1: To acquire protect AI.

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Speaker 2: It's expanding the company's capabilities in security basically combating new threats,

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Speaker 2: I mean, an explosion in artificial intelligence.

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Speaker 1: All of this as we get the CRSA.

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Speaker 2: Conference underway, joining us now Nikesha or a Powo Alto

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Speaker 2: Network CEO, You've got a lot to announce new security platform,

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Speaker 2: but let's just go to the new announcement. In terms

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Speaker 2: of M and A. You're going to go us an

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Speaker 2: amount that you paid. I was hearing about up to

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Speaker 2: six hundred and fifty million dollars.

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Speaker 3: We're not going to talk about what we paid. Caroline.

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Speaker 3: Nice to see you. Like we're again at a technology

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Speaker 3: inflection point. We're all talking about AI. You had people

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Speaker 3: talking about AAI earlier. And every time you have a

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Speaker 3: technology inflection point, it becomes very important that we are

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Speaker 3: able to come forward and provide solutions to our customers

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Speaker 3: so they can securely deploy technology. And in that context,

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Speaker 3: we're very excertively and aggressively working on both a build

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Speaker 3: and buy strategy to build perhaps what will be the

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Speaker 3: most important thing over the next few years, which is

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Speaker 3: a platform that allows you to deploy I securely.

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Speaker 2: Okay, so let's talk about build versus buy and why

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Speaker 2: was this asset protect AI so necessary to go inorganic

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Speaker 2: at this moment?

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Speaker 3: Well, kind of like if you look at what's going

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Speaker 3: on in AI you were on before. People talk about LMS,

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Speaker 3: people talk about deploying AI based applications. People trying to

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Speaker 3: figure out how to deploy infrastructure, whether it's on prem

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Speaker 3: or in the public cloud, with chips set to use,

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Speaker 3: which model to use. All these are very important technological

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Speaker 3: decisions which are going to underpin the platforms of the future. Now,

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Speaker 3: when you put them together and you deploy them, you

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Speaker 3: have to make sure that you're looking at the security

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Speaker 3: aspect of every one of these things. Protector AI, after

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Speaker 3: an extensive look around the market, we found was working

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Speaker 3: on some very interesting topics which are complementary to what

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Speaker 3: we've been building. People are building a great run time

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Speaker 3: platform if we protect our customers. As the DEPLOYAI, protect

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Speaker 3: OI was working on something similar where they're looking at

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Speaker 3: all the models in the world, scanning them to make

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Speaker 3: sure there wasn't bad stuff lurking in them. So the

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Speaker 3: combination of the two, which we will integrate into one platform,

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Speaker 3: actually allows us to be more comprehensive and we will

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Speaker 3: offer our customers.

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Speaker 2: I just want to get your birdside perspective here in

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Speaker 2: a kesh, because no one can push us forward as

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Speaker 2: much as you can in many ways to the future

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Speaker 2: of agenic KI.

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Speaker 1: And the fact that where are we to ultimately be

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Speaker 1: protecting ourselves.

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Speaker 2: There's demand for traditional basically farwall endpoint products of security.

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Speaker 2: How does that shift if you're going from a user

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Speaker 2: level to an agent level in this moment, Well, I think.

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Speaker 3: That's going to be the buzzword for RSA Carol, and

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Speaker 3: people are going to talk a lot about how do

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Speaker 3: you make agents work? I think it's still unclear. There's

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Speaker 3: a lot of innovation being put out in the market,

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Speaker 3: whether as the A to A model, there's an MCP model.

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Speaker 3: It's all wonderful buzzwords we create in our industry. But

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Speaker 3: has agendic Yeah, Look, I've said before to me, Agendici

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Speaker 3: becomes real when you start giving AI arms and legs,

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Speaker 3: whether robotic arms and robotic legs or real arms and

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Speaker 3: legs in terms of replacing human beings. And I think

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Speaker 3: that's where the question becomes, can I rely on AI

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Speaker 3: to accomplish the task without supervision? And that's where things

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Speaker 3: will get very interesting and very hairy in certain cases.

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Speaker 3: There it becomes important only to make sure that the

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Speaker 3: agent you're giving autonomy to is something that you're very

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Speaker 3: comfortable will act within the guardrails that you put out

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Speaker 3: there for that agent. And then you got to make

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Speaker 3: sure nobody can take over your agent and hijack it

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Speaker 3: in a way that can make them do things you

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Speaker 3: don't want them to do. So I think that's going

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Speaker 3: to be the next frontier of cybersecurity as we get

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Speaker 3: AI deployed in multiple places, how do we give autonomous

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Speaker 3: control to these agents? How do we give them agency effectively?

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Speaker 3: And can't wait for that world to happen, But it's

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Speaker 3: going to be a whole new set of opportunities that

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Speaker 3: will open up for us.

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Speaker 2: There are a lot of names trying to make the

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Speaker 2: most of this opportunity. A lot of them are the hyperscalers.

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Speaker 2: A lot of them in many ways become your competitors

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Speaker 2: as they add their own security offerings. Where do you

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Speaker 2: sit in this whole frenemy environment.

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Speaker 3: Well, you know, as we fascinating Caroline, logically, the cloud

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Speaker 3: providers should have been our competitors and cloud security. They

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Speaker 3: should have our competitors and endpoints secure, but they're not.

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Speaker 3: They're focused on making sure technology gets deployed as quickly

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Speaker 3: as possible, which is good perhaps for their business for

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Speaker 3: all of their customers. Our job is to make sure

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Speaker 3: that we stay in lockstep with them and work with

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Speaker 3: our customers to make sure they can deploy technology in

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Speaker 3: a secure fashion. Let's be fair if our customers have

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Speaker 3: comfort that when they deploy AI, when they give autonomous

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Speaker 3: control to AI to do some repetitive tasks or interesting tasks,

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Speaker 3: it can be done securely. The moment we can provide

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Speaker 3: the underpinning of trust, the underprinting of reliability, the fact

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Speaker 3: that if you deploy with follow auto networks, there is

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Speaker 3: a very high probability that it's going to be much

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Speaker 3: safer than anything else. I think that's where the winning

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Speaker 3: combination happens. So I don't see this as sort of

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Speaker 3: a competitor environment for now with the hyperscalers. I see

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Speaker 3: it as an opportunity for us to work together and

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Speaker 3: make sure we accelerate the adoption of the technology, as

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Speaker 3: opposed to have our customers be confused.

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Speaker 2: Which way to go. I mean used to work out Google.

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Speaker 2: You host your products on Google Cloud. How do you

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Speaker 2: feel about their big splashy deal for wiz.

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Speaker 3: It'll be interesting to watch. I have lots of conversations

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Speaker 3: with people at Google about it, and we don't intend

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Speaker 3: to change how we deploy our products. We buy infrastructure

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Speaker 3: from them, and sometimes we see them in the market.

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Speaker 3: Our hope is that our customers will understand that you

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Speaker 3: want an unbiased product that can operate effectively on every

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Speaker 3: cloud provider as opposed to something that is beholden to

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Speaker 3: a particular cloud provider. We still need to solve for

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Speaker 3: everybody else out there, so I think that's our sort

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Speaker 3: of ethos. We want to be independent. We want to

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Speaker 3: be somebody that can deliver the same level and capability

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Speaker 3: of security across every platform there is out there, so

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Speaker 3: our customers don't have to spend time trying to integrate

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Speaker 3: all this stuff together, which is our entire around platformization.

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Speaker 2: I love following what you're doing in terms of platform offerings, products,

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Speaker 2: what you're doing in terms of well the latest MNA,

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Speaker 2: but I also love following on social and perhaps whether

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Speaker 2: you wanted to or not, you involved in the AI

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Speaker 2: debate about whether we're going to get as much CAPEX spend,

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Speaker 2: whether infrastructure is reality versus hype.

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Speaker 1: Where do you stand on it right now? Nikesh?

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Speaker 3: I think if you look around you, everybody is getting

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Speaker 3: ready for a very large adoption of AI scenario because

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Speaker 3: you see tens of billions of dollars being committed by

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Speaker 3: people in terms of building infrastructure. I think that's right.

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Speaker 3: I think we may get the sort of the timing

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Speaker 3: not perfect. You know, you may build too much before

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Speaker 3: it's all consumed. But I think it's headed in the

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Speaker 3: right direction. I think short term, in this twelve to

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Speaker 3: twenty four months timeframe, you could see that a lot

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Speaker 3: of the investment that's going is going towards innovation. I say,

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Speaker 3: make a smarter model, make robotics work. So you need

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Speaker 3: a lot of power, you need a lot of compute

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Speaker 3: to get to a place where these models become extremely useful.

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Speaker 3: Once you get to a point where these models are

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Speaker 3: extremely useful, the question becomes how do I deploy them

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Speaker 3: in my business? How do I, as a regular company,

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Speaker 3: regular customer, deploy these things effectively securely. I think that

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Speaker 3: could take a little longer than people think because everybody's

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Speaker 3: experimenting and we're not all experts yet. Now this is

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Speaker 3: something that came about less than twenty four months ago,

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Speaker 3: so we all have to get our muscle understand how

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Speaker 3: this affects our business. How do I build robotic things

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Speaker 3: that can do stuff for me around my enterprise? How

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Speaker 3: do I build AI agents that can do stuff for

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Speaker 3: me on my enterprise? Do I build or do I

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Speaker 3: buy from somebody? So all that stuff will take a

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Speaker 3: little longer to pan out, But when it happens, we're

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Speaker 3: going to need all that capacity that's being built, and unfortunately,

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Speaker 3: you can't wait to build capacity. You have to build

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Speaker 3: it ahead of demand. So I think I think it's

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Speaker 3: the right direction. Timing's still to be figured out.

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Speaker 2: Well, thanks for sharing your expertise across all the subjects

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Speaker 2: and the deal news nikesha or go enjoy RSA.

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Speaker 1: We thank you. Paloelta Networks CEO