**Palo Alto Networks drops $3.35B on Chronosphere — here's why it matters for AI infrastructure**

Palo Alto Networks just sealed a $3.35 billion deal to snap up Chronosphere, an observability platform built for AI workloads. The move signals something bigger: security giants are betting hard on real-time data visibility as AI data centers become mission-critical.

Chronosphere isn't tiny either — it's already sitting on $160M+ ARR with triple-digit YoY growth. That's the kind of traction that justifies a premium acquisition price.

What's the play here? Palo Alto is essentially saying: modern AI systems need constant uptime + always-on monitoring + fast remediation. Combine Chronosphere's observability layer with Palo Alto's AgentiX (their AI-powered security automation), and you get real-time issue detection AND agentic fix-it capabilities — no more waiting for dashboards to tell you something's broken.

The deal closes in H2 FY2026, pending regulatory green lights. For enterprises running AI workloads, this could reshape how security and ops teams collaborate when keeping systems alive matters most.