A new cybersecurity startup has entered the market with a different strategy than most modern security platforms. Nir Zuk, the billionaire founder of Palo Alto Networks, has launched a new company called Cylake that focuses on AI‑driven security systems designed to run inside an organization’s own infrastructure.
The startup has already raised around $45 million in seed funding from venture capital investors. The goal is to build a cybersecurity platform that protects highly sensitive environments where data cannot be moved to public cloud systems.
Most cybersecurity tools today operate as cloud‑based platforms. Companies send logs, network traffic, and security data to external cloud services where AI models analyze threats. Cylake is taking the opposite direction.
The company is building an AI‑native security platform that runs completely on‑premise. That means all security analysis happens within the organization’s internal systems without transferring sensitive data to external servers.
This model is designed for industries such as government agencies, defense organizations, financial institutions, and critical infrastructure operators. These sectors often face strict regulations that limit where sensitive data can be processed or stored.
According to the company, AI will play a central role in detecting threats, analyzing network behavior, and automatically responding to cyber attacks. The system is expected to monitor large volumes of security data while operating entirely within private infrastructure.
The idea has attracted attention because the cybersecurity industry has spent the past decade moving toward cloud‑based security platforms. Launching a new security company focused on on‑premise architecture is considered an unusual move.
However, Zuk argues that many organizations still require security platforms that operate fully within their own networks. As cyber threats grow more sophisticated, companies handling highly sensitive data may prefer security systems that remain completely under their control.
If Cylake succeeds, it could create a new segment in the cybersecurity industry focused on AI‑powered security platforms built for highly regulated environments.
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