As AI security concerns rise, HiddenLayer raises $100M and Huskeys bags $27M

Artificial intelligence security startup HiddenLayer Inc. today announced a $100 million Series B round, and a separate $27 million Series A went to edge security company Huskeys Security Ltd.

Austin-based HiddenLayer, which dates to 2022, offers a product that checks models and the packages they depend on for tampering before deployment. Red-team exercises probe the same models for weaknesses. Live systems get watched at the inference layer, where HiddenLayer looks for prompt injection and for attempts to steal a model.

More than 50 new platform customers signed on over the past year. Annual recurring revenue grew more than tenfold in the same stretch and now sits in the tens of millions of dollars, Chief Executive and co-founder Chris Sestito told TechCrunch. A frontier model provider with more than 700 million weekly users is on the list. HiddenLayer did not say which one.

Sestito said the company set out to secure enterprise AI “long before most saw the urgency.” The new money goes toward expanding the Agentic Runtime Security line. A second product, Agent Harness Security, is aimed at the autonomous coding agents.