CrowdStrike to acquire AI observability startup Fiddler

CrowdStrike announced a definitive agreement on Tuesday to buy Fiddler AI, a Silicon Valley company focused on observability and explainability for AI agents. The purchase price was not disclosed. CrowdStrike called Fiddler a top provider in that field. According to CrowdStrike, Fiddler's technology will add evaluation before deployment, ongoing accountability for agent behavior, and the ability to explain agent decisions to the Falcon platform. CrowdStrike said the deal will help companies expand their AI use more quickly while remaining answerable for what their agents do.

Fiddler's features will be folded into Falcon under the name Falcon Observe. CrowdStrike expects it to be generally available in its fiscal fourth quarter of 2027. Falcon Observe will offer evaluation before deployment, ongoing tracking of how agents behave, and tools to explain the reasoning behind agent decisions.

Before an agent goes live, Falcon Observe will check its accuracy, whether it finishes tasks, and whether it follows policy for every prompt, model, and setup. After deployment, it will trace the decisions agents make, the steps they take to reason, and the tools they call. It will flag when agent behavior shifts, when agents hallucinate, and when they take unintended actions in production. For governance and audit needs, it can watch agents built in-house, by outside vendors, and for coding. The product also keeps an eye on token consumption and related costs.

CrowdStrike stated that its custom models can cut evaluation expenses by as much as 98% because they do not need to call external large language models. Fiddler works with OpenTelemetry for instrumentation and can be used with LangGraph, Amazon Bedrock, AWS Strands, and Google ADK. According to CrowdStrike, the integration will let companies link agent actions to Falcon's identity, cloud, and runtime data.

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."

The deal will be paid mostly in cash, with part delivered as stock subject to vesting conditions, and is expected to complete in CrowdStrike's fourth fiscal quarter of 2027, subject to customary closing conditions.

CrowdStrike expects Falcon Observe to become generally available in the same quarter the acquisition is expected to close, Q4 FY27.

Along with the acquisition, CrowdStrike revealed three new partnerships. With Deloitte, it plans to cover everything from board-level strategy to daily security operations. With CoreWeave, it will offer Falcon protection and round-the-clock managed security to companies using CoreWeave's cloud for critical AI tasks. And with Dynatrace, it aims to improve both security and observability.