AI protection company HiddenLayer receives $100 million in funding.

HiddenLayer, an Austin-based startup has secured a $100M Series B financing round led by Delta-v Capital, Microsoft M12, Morgan Stanley. The company’s ARR is 10x year over year. The AI security market size was valued at US$2.83B in 2026, and is projected to reach US$4.78B by 2027.

As enterprises increasingly rely on AI agents (trained models) to take autonomous actions, securing these agents from tampering through prompt injection, poisoned libraries and agent pipeline attacks becomes crucial. With $100M+ rounds for HiddenLayer, Noma, and Zenity (other players in this space), the AI security industry is becoming an independent space with rounds worth billions of dollars.