Palo Alto Networks has agreed to acquire identity-management specialist CyberArk in a cash-and-stock transaction valued at about $25 billion, according to industry commentary published Thursday. The tie-up, one of the largest on record for the cybersecurity sector, underscores a rapidly growing view that identity has become the primary control plane for defending corporate networks, particularly as artificial-intelligence tools multiply attack surfaces. The move comes as fresh research highlights widening gaps in corporate defenses. The 2025 State of Identity Security Report warns that AI-driven phishing campaigns and weaknesses in multi-factor authentication have turned security-first identity and access management into a business imperative. Technology vendors are reshaping their portfolios in response. Microsoft this week detailed an expanded suite of protections for AI workloads, extending its Defender, Entra and Purview platforms to cover model security, non-human identities and data governance. At VMware Explore, Broadcom executives said VMware Cloud Foundation 9 now offers continuous compliance checks and extended endpoint recovery to safeguard private AI models. Together, the initiatives signal a broader industry shift toward embedding identity controls and resilience at the core of AI adoption.