Cyera, a data security firm valued at $12 billion after a recent $600 million funding round, has signed a letter of intent to acquire Oasis Security for roughly $1 billion. The deal, expected to close mostly in cash with some Cyera shares, targets a growing vulnerability: the security of non-human identities, particularly AI agents. Main Developments Founded in 2022, Oasis has raised about $195 million from investors including Accel, Craft Ventures, and Cyberstarts. The startup specializes in cybersecurity for AI agents, monitoring their behavior and controlling their access to other software—a need that intensifies as AI agents proliferate across enterprises. Cyera plans to integrate Oasis's technology into a unified identity and data security platform after the acquisition. The company has been on a buying spree, recently acquiring Index Ventures-backed Ryft and Genie Security, which was less than a year old at the time. Read also: Bot-Detection Startup Spur Lands $200M from Insight Partners Background Cyera and Oasis share common investors in Accel and Cyberstarts, which likely facilitated the deal. Cyera, now five years old, has raised approximately $2.3 billion in total funding. Despite recently surpassing $150 million in annual recurring revenue, the company is far from profitable, as TechCrunch reported last month. The acquisition underscores a broader trend: a surging market for cybersecurity providers that defend enterprises against AI-weaponized threats. As companies deploy more AI agents, the attack surface expands, making identity and access management for non-human entities a critical concern. Why It Matters For enterprises, the deal signals that securing AI agents is becoming a priority investment area. Without proper monitoring, AI agents can be exploited to access sensitive data or trigger cascading security failures. Cyera's move to combine data security with identity protection could set a new standard for comprehensive defense. The acquisition also highlights the financial stakes: Cyera is spending $1 billion despite being unprofitable, betting that the AI security market will deliver future returns. Investors are clearly willing to back that vision, given the company's $12 billion valuation. What's Next The deal is expected to close after regulatory approvals. Cyera will need to integrate Oasis's technology while managing its recent acquisitions of Ryft and Genie Security. The company's path to profitability remains an open question, especially as it continues to spend heavily on M&A.