For Startups Safeguarding AI Models, Revenue Remains Modest

Cybersecurity startups are busy touting their next big opportunity: safeguarding companies from the threats generated by artificial intelligence. That’s led to surging revenue for some of them. But previously unreported financial details for others—particularly young startups focused on safeguarding AI models—show corporate IT buyers have been slow to pay for this protection.

Three-year-old HiddenLayer, which sells software to protect AI models from attacks that hurt their performance or accuracy, is among the startups currently testing investors’ appetite for AI-focused security. After the startup generated more than $5 million in annualized revenue by last fall, it told potential investors it was targeting a pace of $10 million by the end of 2024 and $30 million by the end of 2025, according to a person who spoke with company executives.