As noted in my last earnings take, Cloudflare seems well-positioned. The rise of agentic AI is driving renewed demand within all segments of Cloudflare, across Act 1 (app traffic services), Act 2 (secure agentic connections), and Act 3 (serverless development in Workers). Let's catch up on how Cloudflare has been adapting its platform for agentic AI, as well as the AI security moves from its primary SASE competitors. This will also be of interest to hyperscalers, neoclouds, and next-gen security providers like Palo Alto, Zscaler, Google/Wiz, and Netskope.

  • Cloudflare has been busy continuing to mature its Act 2 and Act 3 services, and better unifying them as a complete Agentic AI platform that provides both AI security and serverless development.
  • They acquired Replicate last year to bolster their Worker AI inference-as-a-service capabilities. This greatly expanded the number of hosted models, and they have since pushed into much larger LLM models.
  • They continue to evolve their core Cloudflare for AI capabilities (AI Gateway and Firewall for AI) in Act 1. The firewall is now called "AI Security for Apps"  [... and Agents!], a secure layer for enterprises to manage and oversee all AI usage and external agentic tool use.
  • They have greatly expanded the "sandbox" capabilities in the Workers ecosystem, including via one-off containers (Cloudflare Sandbox) and isolated serverless code (Dynamic Workers). This positions Cloudflare as an ideal location for AI agents to write and execute untrusted code.
  • They evolved/matured several existing low-level capabilities (primitives) in Workers to better hone them for agentic AI, including programmatic browser use (Browser Run), email processing (Email Service), an external tool gateway (MCP Server Portals), and a managed RAG service (AI Search).  
  • They also debuted a new code-friendly storage tier (Artifacts) designed for iterative coding & file editing in agentic AI.
  • They also added a new managed agentic memory capability (Agent Memory) that helps track, summarize, and compact AI conversations, to help users greatly reduce input token use.
  • They just announced a new "Cloudflare Mesh" product that further joins Act 2 and Act 3 together, providing enterprises with a new private networking service for secure agentic AI use. This allows enterprises to leverage their SSE/SASE network to secure any traffic to, from, or between AI agents, and to then utilize Workers inline within that private network for any agent development needs (inference-as-a-service, serverless compute, storage, databases, message queues, isolated code sandboxes, et al).

Cloudflare just had its "Agents Week" in mid-April – the first Innovation Week it has run since AI Week and Birthday Week in August/September of last year.  Let's recap the most interesting product moves across these three Innovation Weeks and other announcements.