CalypsoAI’s leadership emphasizes their solutions' role in pressure testing AI, setting inference guardrails, and enhancing visibility and auditability to reduce deployment risks.

CalypsoAI has raised over $43 million in funding prior to the acquisition, with investors including Paladin Capital Group, Lockheed Martin Ventures, and Hakluyt Capital, reflecting strong industry confidence.

F5 is acquiring CalypsoAI to integrate its advanced AI security capabilities into its Application Delivery and Security Platform, aiming to create a comprehensive solution that addresses the rising attack surfaces associated with enterprise AI adoption.

The combined platform will focus on securing the inference layer of AI models, which process requests, rather than the models themselves, helping enterprises reduce risks related to data leaks, unsafe outputs, and compliance issues.

CalypsoAI’s solutions enable enterprises to test AI systems at scale, set adaptive inference guardrails, and improve visibility and auditability, according to CEO Donnchadh Casey.

CalypsoAI’s model-agnostic approach allows flexible governance across multiple AI models, clouds, and deployment environments, setting F5 apart from competitors.

The acquisition is expected to close in F5’s fourth quarter of fiscal year 2025, ending September 30, and will be financed mainly through cash, with minimal impact on F5’s revenue and operations.

Market reaction was positive, with shares rising before settling at $333.81, up 2.2%, indicating investors see strategic value but not a fundamental change in the company's outlook.

Since the start of the year, F5’s stock has gained over 32%, reaching a 52-week high, with long-term investors seeing significant growth from initial investments.

F5’s stock has remained relatively stable over the past year, and recent gains reflect market confidence in its strategic moves amid broader economic concerns.

F5’s focus on AI security positions it as the only vendor capable of delivering comprehensive, proactive AI security across hybrid and multicloud environments, beyond traditional network security.

F5 will incorporate CalypsoAI’s Model Leaderboard to help customers benchmark AI model security, resilience, and performance, aiding informed AI deployment decisions.

F5 aims to reposition itself from a primarily application delivery firm to a comprehensive security vendor, capitalizing on the expanding AI security market.