CrowdStrike acquires observability startup Fiddler AI

CrowdStrike has signed a definitive agreement to acquire Silicon Valley startup Fiddler AI, an AI agent observability and explainability company.

Fiddler’s capabilities will be integrated into CrowdStrike’s Falcon platform as Falcon Observe, which is expected to become generally available in the fourth quarter of fiscal 2027 (Q4 FY27).

The product will include pre-deployment evaluation, continuous monitoring of agent behaviour and explainability tools meant to show how and why AI agents reach decisions.

CrowdStrike said Falcon Observe will assess agent accuracy, task completion and policy compliance across prompts, models and configurations before deployment.

It will also trace agent decisions, reasoning paths and tool calls, and detect behavioural drift, hallucinations and unintended production actions.

The offering will support monitoring of first-party, third-party and coding agents for governance and audit purposes, and will track token usage and spending.

CrowdStrike said its purpose-built models can reduce evaluation costs by up to 98% without external large language model calls.

Fiddler supports instrumentation through OpenTelemetry and is compatible with LangGraph, Amazon Bedrock, AWS Strands and Google ADK.

CrowdStrike said the integration will allow agent behaviour to be correlated with Falcon identity, cloud and runtime intelligence.

Payment will be made mostly in cash, with part of it delivered as stock that is subject to vesting conditions.

The deal, whose financial terms were not revealed, is expected to complete in CrowdStrike’s Q4 FY27, subject to customary closing conditions.

CrowdStrike CEO and founder George Kurtz said: “When a regulator or your board asks what an agent did, saying ‘the model did it’ is not an answer. Fiddler is the flight recorder for every agent: the observability to explain exactly what an agent did and why. This level of agent visibility and control enables AI safety.”

Alongside the acquisition, CrowdStrike announced three partnerships to expand its cybersecurity and AI offerings.

Its collaboration with Deloitte will extend from boardroom strategy to the Security Operations Center, while its expanded partnership with CoreWeave will bring Falcon platform protection and 24/7 managed security expertise to customers running mission-critical AI workloads on CoreWeave’s cloud.

CrowdStrike also joined forces with Dynatrace to strengthen security and observability capabilities.Top of Form