HiddenLayer Secures $100 Million to Guard Corporate AI

The capital injection, led by Delta-v Capital with participation from Microsoft’s M12 and Morgan Stanley, follows a period of rapid expansion for the startup. CEO Chris Sestito reports that annual recurring revenue grew more than tenfold over the past year, reaching the tens of millions. The firm’s client base now spans major financial institutions, tech giants, and government entities, including the Department of Defense.

While HiddenLayer’s core offerings—ranging from attack simulation to supply chain security—remain consistent with its 2023 roadmap, the scope has widened to address vulnerabilities like prompt injection and malicious tool use. Sestito likens the company's runtime protection to traditional endpoint detection and response, noting that as businesses move from experimental AI to production, securing these models against hidden "models within models" has become a critical operational requirement.

With Gartner projecting that corporate spending on AI security tools will reach nearly $4.78 billion by next year, competition is intensifying. Large incumbents like Cisco and Palo Alto Networks are potential acquirers, while well-funded rivals like Noma and Zenity are vying for the same market share. HiddenLayer intends to use its new war chest to accelerate sales and distribution while pushing into European and EMEA markets, betting that its specialized focus on AI infrastructure will keep it ahead of broader platform bundling.