Vation M&A Insights: SentinelOne Acquires Prompt Security

SentinelOne has announced its acquisition of Prompt Security, a rapidly emerging player in AI runtime security focused on preventing prompt injection, data leakage, and AI misuse. Following Palo Alto Networks’ acquisition of Protect AI, this latest deal represents a strategic extension of the company’s AI-native Singularity platform into one of the fastest-growing and most urgent frontiers in enterprise security: securing generative and agentic AI usage in real time.

The Prompt Security deal is more than just a product expansion; it represents a fundamental repositioning that extends SentinelOne’s AI-native identity beyond detection and response into the active governance of AI usage. By addressing the AI interaction layer, where prompts are injected, data is shared, and agents respond, SentinelOne gains an immediate foothold in a high-velocity market segment with few established leaders. The deal signals a shift in enterprise security priorities, where controlling how AI is used becomes as critical as securing the infrastructure it runs on.

• Transaction Details: The deal brings Prompt Security’s lightweight, model-agnostic runtime security platform into SentinelOne’s Singularity Platform, enabling deep AI usage visibility, policy enforcement, and threat prevention. The fit is immediate, with clear technical integration points and strong channel potential, especially for MSSPs.

• Transaction Rationale: SentinelOne is targeting a rapidly expanding and largely ungoverned risk surface, AI usage itself, where shadow AI and prompt-based attacks threaten security posture. Prompt Security’s capabilities allow the company to leapfrog incremental development and establish a differentiated leadership position early, much like Palo Alto Networks’ recent Protect AI acquisition.  

• Transaction Impacts: The acquisition creates end-to-end AI protection from infrastructure to usage, solves a high-priority market challenge around uncontrolled AI adoption, and forces a competitive rethink among rivals yet to secure the AI runtime layer.

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Transaction Details

SentinelOne will acquire Prompt Security, an AI runtime security specialist offering technology purpose-built to address the growing risks of generative and agentic AI usage, offering model-agnostic, real-time protection against prompt injection, sensitive data leakage, and misuse across browsers, desktop applications, and APIs. The platform’s lightweight, integration-ready design makes it an immediate fit for SentinelOne’s Singularity Platform, enhancing visibility, policy enforcement, and AI-specific threat prevention while driving strong multi-tenancy and MSSP channel support depth.  

Vation Insight

• Target Profile & Differentiation: Prompt Security occupies a unique niche in the AI security stack, focusing on securing the usage layer of AI tools rather than just the underlying infrastructure or models. Its runtime monitoring and enforcement capabilities provide immediate operational value to organizations struggling with shadow AI and unsanctioned GenAI tool adoption, while its model-agnostic approach ensures coverage across OpenAI, Anthropic, Google, and self-hosted LLMs.

• Technology Integration Fit: The platform’s browser, desktop, and API-level integration points align naturally with SentinelOne’s endpoint-centric architecture, enabling unified telemetry and enforcement. Prompt Security’s MCP Gateway, which inspects and governs interactions with over 13,000 known MCP servers, further complements SentinelOne’s existing AI-powered detection and response capabilities, providing granular, real-time oversight of AI agent activity.

• Channel & Delivery Potential: Prompt Security’s lightweight deployment model makes it attractive to managed security service providers (MSSPs) and multi-tenant environments, an area of strategic growth for SentinelOne. By embedding Prompt Security into the Singularity Platform, SentinelOne can offer partners an AI usage governance capability that is scalable, remotely manageable, and positioned for cross-sell alongside its broader endpoint, identity, and cloud security offerings.

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Transaction Rationale

The acquisition of Prompt Security enables SentinelOne to close the critical and growing enterprise security gap of real-time governance and protection of AI usage at the point of interaction. As generative and agentic AI adoption accelerates, Prompt Security’s capabilities allow SentinelOne to move beyond protecting infrastructure and data to securing how AI tools are actually being used. The model-agnostic, integration-ready design supports SentinelOne’s strategy to expand its Singularity Platform into a unified, AI-native security layer that spans endpoint, cloud, identity, and now AI usage.

Vation Insight

• Addressing a High-Velocity Risk Surface: Enterprise AI adoption is outpacing security oversight, with employees experimenting across multiple tools and environments beyond IT’s control. Prompt Security’s runtime monitoring, policy enforcement, and data redaction capabilities give security teams real-time visibility and control over these interactions, enabling safe scale-up of AI usage while reducing operational risk.

• Strengthening Platform Cohesion: The acquisition deepens the Singularity Platform’s coverage by correlating AI interaction data with existing endpoint, cloud, and identity telemetry. This unified approach not only improves threat detection fidelity but also enhances SentinelOne’s Purple AI analyst assistant, enabling context-rich, automated investigations that incorporate AI usage patterns.

• Creating a Differentiated Market Position: While competitors are largely focused on securing AI models or enhancing AI-powered threat detection, SentinelOne gains a unique claim in the emerging security for AI usage category. By protecting AI interactions across any model or provider in real time, the company positions itself as a first mover in a market segment likely to see rapid consolidation and high customer demand.

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Transaction Impacts

The Prompt Security acquisition positions SentinelOne at the forefront of the emerging security for AI market, expanding its platform coverage from infrastructure to usage. By delivering real-time oversight, policy enforcement, and AI-specific threat prevention, SentinelOne addresses one of the most urgent and underserved security needs as enterprises operationalize generative and agentic AI. This move not only strengthens the company’s technology moat but also creates competitive differentiation, new partner-driven revenue opportunities, and a foundation for long-term leadership in AI usage governance.

Vation Insight

• Full-Stack AI Protection: Integrating Prompt Security gives SentinelOne end-to-end AI coverage, unifying infrastructure, data, and usage protections in a single platform. Real-time policy enforcement at the point of AI interaction prevents risks before they escalate, while unified telemetry correlates AI activity with endpoint, identity, and cloud events for faster, context-rich investigations.

• Solving the Shadow AI Challenge: Prompt Security directly addresses the uncontrolled adoption of AI tools, which represents a top concern for CISOs and compliance leaders. By offering lightweight, model-agnostic deployment, SentinelOne can enable secure AI adoption across regulated industries, distributed workforces, and multi-cloud environments, where governance gaps are most acute.

• First-Mover Advantage: While rivals focus on AI model security or enhancing detection with AI, SentinelOne gains a distinctive position in protecting how AI is used in the enterprise. This unique angle could force competitors into reactive M&A or rapid development cycles, giving SentinelOne an early brand association and market leadership in this high-growth security segment.

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Conclusion

SentinelOne’s acquisition of Prompt Security signals a new chapter in enterprise security strategies, where governing AI usage becomes as vital as safeguarding the underlying infrastructure. As adoption of generative and agentic AI speeds up, securing the interaction layer will quickly shift from a niche concern to a fundamental requirement for organizations across sectors. This change will likely drive competitive M&A activity, compel technology providers to broaden platform capabilities, and redefine what “full-stack” security entails in an AI-driven world.  

Our 2025 Technology & Market Predictions foresaw platform-driven M&A as a defining force in tech, and this deal proves it. Our Research & Insights team delivers custom, data-backed intelligence so you can navigate high-velocity markets, anticipate strategic shifts, and seize opportunities before they hit the headlines. Foresight creates competitive advantage in today’s technology landscape. Connect with us to stay ahead.

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