HiddenLayer nabs $100M as enterprises rush to secure their AI deployments

HiddenLayer, an AI security startup, has secured $100 million in a Series B funding round led by Delta-v Capital. This comes as enterprises rush to secure their AI deployments. While AI threats were once difficult to pinpoint, security companies are now scrambling to build products to monitor AI tools and add-ons. Gartner estimates that companies will spend $2.83 billion this year on AI security products, up 83% from 2025.

HiddenLayer, which secures AI models, agents, and workflows from adversarial attacks and malicious code injections, has seen its annual recurring revenue grow over 10x in the past year. The company's co-founder and CEO, Chris Sestito, attributes this growth to new customers signing up in the past year. Financial services, large tech companies, the Department of Defense, and intelligence community are among its largest verticals.

HiddenLayer's new products focus on addressing prompt injection, agent manipulation, and malicious tool use, expanding its scope from traditional modeling to Gen AI and agentic work streams. The startup's new funds will primarily go towards building its products, sales, and distribution, as well as expanding into Europe and EMEA.

While some of its AI security products could eventually be bundled into platforms built by large cybersecurity companies, HiddenLayer aims to scale vertically alongside AI and eventually expand horizontally into other cybersecurity areas that increasingly depend on AI.