HiddenLayer Announces $100M Series B as AI Security Market Surges
aiinsider ·
AI security startup HiddenLayer has raised $100 million in a Series B round led by Delta-v Capital, with additional backing from Ten Eleven Ventures, Morgan Stanley, Microsoft's M12, and Booz Allen Hamilton. The Austin-based company specializes in protecting AI models, agents, and workflows against adversarial attacks, vulnerabilities, and malicious code. CEO Chris Sestito reported that annual recurring revenue grew more than tenfold in the past year to tens of millions of dollars, with over 90% of growth coming from new customers such as large financial firms, major tech companies, and U.S. defense and intelligence agencies. The company's technology spans discovery, runtime protection, attack simulation, and supply chain security, and now addresses emerging threats like prompt injection, agent manipulation, and malicious tool use. HiddenLayer also scans dozens of AI file frameworks to detect hidden or mislabeled models in open-source and open-weight systems. The new funding will support expanded sales, engineering, and research efforts, as well as growth into Europe and the broader EMEA region. This investment reflects a broader surge in AI security spending, which Gartner estimates will approach $2.83 billion this year and nearly $4.78 billion by 2027.
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