HiddenLayer Raises $100 Million to Secure Enterprise AI Deployments

HiddenLayer, an AI security startup focused on protecting AI models, agents and workflows, has raised $100 million in a Series B funding round as demand grows for tools designed to secure enterprise AI deployments.

The funding comes as companies increasingly adopt AI systems and face new security challenges, including model vulnerabilities, prompt injection attacks, and malicious use of AI tools. Gartner has forecast rapid growth in spending on AI security products as organisations invest in protecting their AI systems.

HiddenLayer’s platform helps companies detect and prevent threats against AI models, agents and workflows. The company said its annual recurring revenue increased more than 10-fold over the past year, with most of the growth coming from new customers.

HiddenLayer expands AI security platform.

The Austin-based company said its customers include financial services firms, major technology companies and government organisations. HiddenLayer also works with customers building AI products, including a leading foundation model provider with hundreds of millions of weekly users.

The startup said it has expanded its product offerings beyond traditional machine-learning security to address emerging AI risks, including agent manipulation, prompt injection, and malicious tool use.

CEO and co-founder Chris Sestito said AI runtime security has become increasingly important as businesses deploy more AI systems, comparing the approach to traditional endpoint security tools but designed specifically for AI environments.

The company is also focusing on risks involving open-source AI models. HiddenLayer said it scans AI file frameworks to identify cases where models may not be what they appear to be, including hidden or altered components inside models.

The new funding round was led by Delta-v Capital, with participation from Ten Eleven Ventures, Morgan Stanley, Microsoft’s M12, Booz Allen Hamilton and others. HiddenLayer plans to use the investment to expand sales and research and engineering efforts, while also expanding into Europe and the wider EMEA region.

The AI security market is becoming increasingly competitive, with cybersecurity companies pursuing acquisitions and startups raising large funding rounds in adjacent areas. Security researchers have also highlighted new risks associated with AI agent frameworks as organisations deploy more autonomous systems.

Companies including Cisco, Palo Alto Networks and Check Point have also moved into AI security through acquisitions. At the same time, startups such as Noma Security and Zenity have raised significant funding to develop security solutions for AI-powered systems.