Cybersecurity stocks fell on Wednesday amid a report that artificial intelligence system maker OpenAI plans to acquire an industry startup to advance product development.
OpenAI is in early talks to buy Trail of Bits, a startup that finds and fixes vulnerabilities in open-source software, the Information reported.
Worries that U.S. AI model makers OpenAI and Anthropic would compete with industry incumbents sent down cybersecurity stocks in March. Worries eased after the AI model makers announced projects to screen their AI models before their formal release.
One view is that the AI models makers could still launch their own cyberdefense products in 2027 to help others counter threats from leading edge AI models.
Cybersecurity Stocks: Powerful AI Models
Bullish analysts say a worsening artificial intelligence-based threat landscape supports higher valuations for cybersecurity stocks. Shares in many cybersecurity stocks have jumped in 2026, including CrowdStrike Holdings (CRWD) and Palo Alto Networks (PANW).
Source: Investors