Cloudflare expands AI security tools and targets agentic AI growth

Cloudflare is expanding its product suite with new AI-driven security and developer tools, including agent sandboxing and vulnerability detection features. Chief Financial Officer Thomas Seifert stated that the company is shifting its focus toward agentic artificial intelligence, an opportunity he believes will “dwarf what is already behind us.”

To support these workloads, Cloudflare is leveraging its network architecture to provide low-latency, secure, and distributed AI inference. The company reports that major entities, including OpenAI, Anthropic, and Figma, are building on its Workers platform. Seifert noted that the company added 2 million developers in the most recent quarter, signaling a shift in software spending from seat-based subscriptions toward variable, consumption-driven models.

While the company has raised its long-term growth target from 40% to 50%, investor scrutiny remains regarding its valuation. Following a significant year-to-date share price increase, some market analyses suggest a gap between the current trading price and estimated fair value.