HiddenLayer Raises $100M in Series B as AI Security Market Grows Rapidly
AI security startup HiddenLayer has raised a $100 million Series B funding round led by Delta-v Capital, with participation from major investors including Microsoft’s M12 and Morgan Stanley. The company is capitalizing on the growing demand for tools to secure AI models against adversarial attacks and vulnerabilities as enterprises increasingly deploy artificial intelligence in production environments. The startup's annual recurring revenue has grown more than 10x over the past year, reaching tens of millions of dollars, driven largely by new customer acquisitions. HiddenLayer serves major clients across financial services, large tech firms, government agencies like the Department of Defense and potentially leading AI model providers with hundreds of millions of users. Gartner forecasts that global spending on AI security will reach $4.78 billion in 2025, up from an estimated $2.83 billion this year. HiddenLayer is expanding its product scope to address new threats like prompt injection and agent manipulation while planning international expansion into Europe.
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Topics: Artificial Intelligence Cybersecurity Funding Rounds Startup Growth