Cybersecurity stocks CrowdStrike and Palo Alto Networks surged on Monday amid growing concern about the risks of artificial intelligence (AI).
Shares of the two companies were up double digits at the time of this writing Monday afternoon: CrowdStrike Holdings Inc. (Nasdaq: CRWD) was up 15%, while Palo Alto Networks Inc. (Nasdaq: PANW) was up 13%.
Both make products designed to detect, investigate, and neutralize modern cyber threats using endpoint protection, a method used to protect devices such as desktops, laptops, smartphones, tablets, and servers from cybersecurity threats.
The surge comes amid fresh warnings about the security risks associated with AI after a massive AI breach, in which autonomous OpenAI models went rogue, coordinating a multiday hack of Hugging Face on a shared unsanctioned “message board,” as Fast Company previously reported.
Over the weekend, Anthropic CEO Dario Amodei called for a slowdown on AI development, saying, “we must pace the frontier . . . progress will still seem fast, and we must make wise use of the time we gain.”
“The frontier will move at whatever speed it moves,” CrowdStrike CEO George Kurtz clapped back in a post on X. “The rest of the world will not slow down . . . our job in the cybersecurity community is to make sure it moves securely and safely.” Kurtz argued securing AI is more important than slowing it down.
The debate follows Microsoft co-founder Bill Gates’ own warning—a 6,000-word essay outlining the the harms of artificial intelligence, which he said carries the risk of mass unemployment and major social, political, and economic upheaval across the globe.
“We can’t trust the AI industry to regulate itself,” Evan Greer, Director of Fight for the Future, a nonprofit, digital rights advocacy group, tells Fast Company. “We can’t really trust anything these self-interested billionaires say. But we should take them seriously that the technology they are building is dangerous. And we should act urgently to demand strict regulation that protects people and holds AI companies accountable for the harm they’ve already done, while also preventing future harm.”
CrowdStrike is expected to report third-quarter earnings for fiscal 2027 at the beginning of December.
