Nir Zuk Launches Cylake to Build AI-Powered Cybersecurity Platform
After more than two decades leading Palo Alto Networks and transforming it into the world’s largest standalone cybersecurity company with a $125 billion market capitalization, entrepreneur Nir Zuk has launched a new cybersecurity startup called Cylake.
The company aims to develop an AI-powered cybersecurity platform designed for organizations that cannot rely on cloud infrastructure to protect sensitive data, including governments, defense contractors, and highly regulated institutions.
The move marks Zuk’s return to the startup world after retiring last year from his role as chief technology officer at Palo Alto Networks, the company he founded in 2005.
A Contrarian Bet Against the Cloud Trend
Unlike most modern cybersecurity companies that deliver their services through the cloud, Cylake is building a system that operates on-premise or within private cloud environments, using artificial intelligence to analyze data and detect cyber threats.
Zuk told Business Insider:
"The industry has overrotated toward delivering everything in the cloud, and that has left many of the most important customers stuck 20 years behind."
He noted that many organizations—particularly those operating in sensitive sectors—cannot move their data to public cloud infrastructure due to regulatory and sovereignty requirements.
$45 Million in Early Funding
The startup has already raised $45 million in seed funding led by venture capital firm Greylock, the same investor that backed Palo Alto Networks in its early days.
Investors believe the opportunity could be significant, estimating that roughly one-third of the global cybersecurity market consists of organizations unable to adopt cloud-based solutions due to regulatory or data sovereignty constraints.
Experienced Founding Team
Joining Zuk as cofounders are:
- Wilson Xu, former engineering leader at Palo Alto Networks
- Udi Shamir, cofounder of cybersecurity company SentinelOne
Together, the team brings deep experience in building enterprise-grade cybersecurity platforms.
Cybersecurity Investment Boom
The launch of Cylake comes amid strong investment momentum in cybersecurity, driven by rising cyber threats and the growing use of artificial intelligence by attackers.
According to market data, cybersecurity startups raised nearly $14 billion in funding in 2025, representing a 47% increase from 2024, highlighting the sector’s growing importance in the global digital economy.
