Cybersecurity startup Cato Networks just crossed a major revenue threshold, with CEO Shlomo Kramer crediting artificial intelligence for accelerating the company's growth trajectory. The Israeli firm, founded by the same entrepreneur who built Check Point Software and invested early in Palo Alto Networks, is leveraging AI to strengthen its cloud-based security platform at a time when the broader cybersecurity sector grapples with disruption fears. The milestone marks a contrarian win for AI integration in enterprise security.
Cato Networks, the Israeli cybersecurity startup pioneering secure access service edge technology, just hit a major revenue milestone that CEO Shlomo Kramer says wouldn't have been possible without artificial intelligence. Speaking to CNBC, Kramer revealed that AI integration across the company's cloud security platform is materially accelerating business growth at a moment when much of the cybersecurity industry is anxiously watching AI as a potential disruptor.
The announcement carries extra weight given Kramer's pedigree. He co-founded Check Point Software, one of the first major firewall companies, and was an early investor in Palo Alto Networks, which now commands a $90 billion market cap. That track record gives his assessment of AI's role in cybersecurity unusual credibility. "We're seeing AI not just as a feature but as a fundamental accelerator of how we deliver security," Kramer told CNBC, though specific revenue figures weren't disclosed.
Cato's AI implementation focuses on threat detection, network optimization, and automated response systems within its SASE platform, which combines networking and security into a single cloud service. The approach lets enterprises consolidate multiple security tools while AI handles the heavy lifting of analyzing traffic patterns and identifying anomalies in real-time. According to industry analysts, this consolidation trend is reshaping enterprise security spending as companies look to reduce complexity and cost.
The timing of Cato's milestone is particularly notable. While established security vendors like CrowdStrike and SentinelOne have seen their stocks whipsawed by concerns that AI could commoditize threat detection, Cato is demonstrating that AI can actually expand the addressable market for well-positioned startups. The company's SASE architecture naturally benefits from AI's ability to process massive data streams across distributed networks, something traditional firewall vendors struggle to replicate.
