Palo Alto Networks has acquired Console, an AI IT service automation startup backed by Thrive Capital, for $500m, according to sources. The deal leaves Serval, a Sequoia-backed competitor in AI-driven IT service automation, as the de facto startup leader in the category. Source
Wonderful, an AI startup, has raised $550m in a Series C funding round that more than doubles its valuation to $5bn in under six months. The company said it will deploy the capital to develop products faster, expand its FDE teams, and meet demand for its offerings. Source
HiddenLayer, a startup focused on AI security, has raised $100m as enterprises accelerate efforts to secure their AI deployments. Security companies are scrambling to build products that can monitor not just AI agents but also the tools and add-ons they use. Source
The Trump administration has sided with OpenAI in The New York Times' copyright lawsuit, filing a brief in support of the AI lab's argument that training language models on copyrighted material constitutes fair use. The Justice Department stated that "the United States has a strong interest in continuing to develop a robust and competitive artificial intelligence industry that sets the standard for the practice and procedure of AI use globally." Source
New York City has announced a one-year moratorium on artificial intelligence use for students from 2-K through eighth grade, affecting about 600,000 public school students. The policy, introduced by Mayor Zohran Mamdani, is being rolled out alongside additional restrictions on digital devices and will take effect in the 2026-2027 school year. Source