5 AI Companies That Profit From Cybercrime’s Rise

Cybercrime has built a considerably large head start over cybersecurity measures. The continual reports of major corporations’ and individuals’ confidential data compromised through hacking, ransomware, and phishing is estimated to result in losses reaching as much as $10.5 trillion by the end of 2025. In efforts to catch up, the $300 billion and growing cybersecurity sector is now incorporating Artificial Intelligence (AI) to serve as a force multiplier in cybersecurity reach and efficacy. The combination of cybersecurity and AI has been like rocket fuel for Space X, and has led to sky-high valuations and commensurate amounts of investment dollars pouring into both.   

Companies With Cybersecurity AI Technology

AI has become a key force multiplier for the cybersecurity industry, helping to propel it to a $300 billion valuation.

• CrowdStrike (NASDAQ: CRWD | CRWD Price Prediction): The Crowdstrike Falcon platform uses AI in a unified platform for endpoint and cloud security, ID and threat protection, threat intelligence, and proactive, real-time threat defense. It incorporates machine learning to detect threats based on behavioral analysis, and includes a generative AI assistant, Charlotte AI, to boost the productivity of security analysts.
• IBM (NYSE: IBM): IBM’s AI-powered solutions, such as QRadar SIEM and Managed Detection and Response (MDR) services, help analysts detect, investigate, and respond to cyberthreats with greater speed and precision.
• Microsoft (NYSE: MSFT): Microsoft’s Copilot and relationship with ChatGPT are its best known AI conduits. However, through products like Security Copilot and Defender XDR, Microsoft integrates its proprietary AI and its broad threat intelligence into security workflows and protocols to accelerate threat detection and response.
• Palo Alto Networks (NASDAQ: PANW): With its Cortex XDR platform, Palo Alto Networks uses AI and machine learning for advanced threat detection across endpoints, networks, and cloud environments.
• SentinelOne (NYSE: S): SentinelOne’s Singularity platform uses AI to provide comprehensive endpoint and cloud security. Its AI automates threat detection, analysis, and response across a company’s whole digital infrastructure.

M&A – Culling the Competition, With New IPOs on the Horizon

The cybersecurity sector is undergoing a Darwinian M&A culling as big fish gobble up smaller rivals to reduce the size of the competitive field.

• Darktrace: UK headquartered Darktrace’s “self-learning AI” detects threats by understanding normal human behavior, and models every user and device on a client’s network. Its AI technology autonomously responds to threats in real time. The company had been trading on the London Stock Exchange, but was acquired by private equity firm Thomas Bravo in October, 2024.
• Abnormal Security: This company’s AI-based technology is focused primarily on email and collaboration app security. It protects against email-based attacks like phishing and business email compromise. Abnormal Security raised $250 million at a $5 billion valuation in its most recent Reg D, and is planning an IPO for 2026. 
• CyberArk Software (NASDAQ: CYBR) in one of the biggest deals ever in the cybersecurity arena, Palo Alto Networks is acquiring CyberArk Software for $25 billion, second only to Alphabet/Google’s $32 billion of Wiz earlier this year. CyberArk provides a number of features that plug holes in Palo Alto Networks’ cybersecurity protocol offerings, primarily its superior ID security and Privileged Access Management system, which is expected to also expand Palo Alto Networks’ total addressable market. 
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As the cybersecurity industry undergoes its own Darwinian herd culling process, Merger and Acquisition prospects may represent some lucrative speculation plays for intrepid investors following the field.