The American company F5 Networks (NASDAQ: FFIV) has announced the acquisition of CalypsoAI, a leader in AI security. The goal: to integrate its solutions into F5’s Application Delivery and Security Platform (ADSP) and offer large enterprises what promises to be the most comprehensive solution for protecting AI model inference.
valued at $180 million, F5 aims to proactively address an increasing challenge: companies’ exposure to new attack vectors linked to the widespread adoption of generative AI and agentic AI.
A New Attack Surface
Companies are rapidly integrating artificial intelligence into applications, APIs, agents, and models. This new “AI stack” multiplies points of vulnerability and highlights that traditional firewalls and point solutions are no longer enough.
“AI is redefining enterprise architecture and the perimeter that needs to be defended,” stated François Locoh-Donou, President and CEO of F5. “The addition of CalypsoAI will enable us to provide businesses with the confidence to innovate faster and protect their critical data in an environment where F5 secures apps, APIs, and AI models.”
What CalypsoAI Contributes
Founded in 2018 with operations in Dublin, CalypsoAI has been recognized as one of the most innovative companies in the sector. Its approach focuses on protecting the AI inference layer, with a model-agnostic and adaptable solution for various providers and cloud environments.
Key capabilities include:
- Adversarial threat protection: real-time defense against attacks such as prompt injection or jailbreak, with automated testing generating over 10,000 attack scenarios monthly.
- Data security: dynamic barriers that prevent leaks of sensitive information and policy violations, with audit trails for all AI interactions.
- Centralized governance: unified visibility, policy controls, and audit logs to facilitate regulatory compliance, including GDPR and the upcoming EU AI Act.
According to Donnchadh Casey, CEO of CalypsoAI, the partnership with F5 is “more than the sum of its parts, combining high-performance application delivery with AI security to accelerate innovation without increasing risks.”
Market Context
The announcement aligns with rising regulatory pressure on AI use in critical sectors and the proliferation of shadow AI within corporate environments, where employees adopt AI tools without security team validation.
In its latest report on AI Trust, Risk, and Security Management (TRiSM), Gartner warns that companies should avoid relying on a single AI model provider to maintain scalability, cost control, and trust over the long term. The acquisition of CalypsoAI fits this trend by providing an independent and adaptable approach.
Details of the Deal
F5 will acquire all issued shares of the private company CalypsoAI for $180 million in cash. The transaction, subject to customary closing conditions, is expected to close in the fourth fiscal quarter of 2025 (September).
Foros Advisors LLC served as F5’s financial advisor, with Sullivan & Cromwell LLP as legal counsel. Cooley LLP provided legal advice to CalypsoAI.
Conclusion
Through its acquisition of CalypsoAI, F5 strengthens its position as a key player in the security ecosystem for applications, APIs, and AI models. In a landscape where AI becomes both a competitive advantage and a risk, F5’s strategy aims to answer the pressing question facing all CISOs today: how to innovate without compromising data and trust.
via: f5