HiddenLayer nabs $100M as enterprises rush to secure their AI deployments
techcrunch ·
AI security startup HiddenLayer has raised $100 million in a Series B round led by Delta-v Capital, with participation from Microsoft’s M12, Morgan Stanley, and others. The company, based in Austin, makes tools to protect AI models, agents, and workflows from adversarial attacks and code injections. CEO Chris Sestito said annual recurring revenue grew more than tenfold over the past year to the tens of millions, with over 90% of that growth from new customers. HiddenLayer has expanded its existing products to address prompt injection, agent manipulation, and malicious tool use as AI deployments spread. Runtime security has become a priority, and the startup also scans AI file frameworks to detect deceptive or hidden models. The new funding will support sales, distribution, engineering, research, and expansion into Europe and EMEA. Sestito acknowledged that some security features may eventually be bundled by major platforms, but he expects HiddenLayer’s specialized tools to remain necessary as AI infrastructure evolves.
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