Obviously a ton of the AI-specific cybersecurity firms aren’t public, but any thoughts on the space in general? Cybersecurity seems to win no matter what happens:
1. AI development slows: in this case, most companies would still use AI cybersecurity services as a precaution against potential threats (kind of as an insurance). These services are so (relatively) cheap compared to the catastrophic costs of a breach that most businesses will surely opt in.
2. AI development remains the same: in this case, more companies will be concerned about the potential of hacks from rogue AI, likely driving more rapid development of these services.
A lot of identity governance platforms are still being built out and proven, but many of the large cybersecurity firms have proven success through M&A. PANW seems like a reasonably diversified bet on increased spend here, given their development of specific identity governance systems and AI-specific threat detection.