HiddenLayer raises $100 million to protect enterprise AI systems
U.S. startup HiddenLayer, which develops tools to protect artificial intelligence models, agents, and workflows, has raised $100 million in a Series B funding round. The round was led by Delta-v Capital and also included Ten Eleven Ventures, Morgan Stanley, Microsoft’s M12, Booz Allen Hamilton, and other investors, TechCrunch reports.
Growing demand for AI protection
HiddenLayer is based in Austin and offers protection against AI attacks, vulnerabilities, and malicious code injections. According to the company’s co-founder and CEO, Chris Sestito, its annual recurring revenue grew more than tenfold over the past year and now amounts to tens of millions of dollars. More than 90% of this growth came from new customers, he said.
The company’s largest areas are the financial sector and major technology companies creating artificial intelligence products. HiddenLayer also has contracts with the U.S. Department of Defense and the intelligence community. The company says its clients include a provider of advanced models with more than 700 million weekly users.
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Protecting agents and open models
The company has expanded its products for detection, protection while systems are operating, attack simulation, and supply chain security. The new capabilities are intended to counter prompt injections, manipulation of AI agents, and malicious use of tools.
Sestito called security of systems while they are operating one of the priorities, comparing it to endpoint threat detection and response solutions, but for AI. According to him, HiddenLayer analyzes and scans about 50 AI file frameworks to check open models and open-weight models for discrepancies with their stated content and hidden components.
The startup plans to direct the raised funds primarily toward sales and distribution, while expanding its engineering and research teams. The company also intends to expand its operations in Europe and the EMEA region.
