HiddenLayer Secures $100M Series B as Enterprise AI Agent Security Spending Explodes

Austin-based HiddenLayer secured a $100M Series B funding round led by Delta-v Capital to expand its AI security suite across prompt injection, agent manipulation, and malicious tool use. The startup's annual recurring revenue skyrocketed 10x over the past year into the "tens of millions" of dollars, with new customers driving over 90% of that growth. The company's security platform now parses and scans 50 different AI file frameworks to verify open-source models and catch hidden malicious models buried inside legitimate code. The firm claims a "leading frontier model provider" with 700M weekly users as a customer, though it has not formally confirmed the specific identity of the AI lab. Gartner estimates that total enterprise spending on products meant to secure AI deployments will reach $2.83B this year and jump to $4.78B by 2027. "Inference is still inference. So whether it’s on a traditional machine learning model, whether it’s Gen AI, whether it’s an agentic work stream, a lot of our technology still applied." — Chris Sestito