Exein raises $270m and reaches $1.7bn valuation for physical AI security
Rome-based cybersecurity startup Exein has raised $270 million in a funding round led by Headline, reaching a valuation of $1.7 billion. The company positions the round around security for physical AI, expanding an earlier focus on the internet of things. Exein said the financing was significantly oversubscribed.
Chief executive and founder Gianni Cuozzo said the company’s premise is that every device should be able to defend itself, whether or not it is connected to a secure network. Exein has worked directly with original equipment manufacturers and silicon vendors since its founding in 2018, a model built around the growth of connected devices.
From connected devices to physical AI
Exein says it has secured more than 2 billion connected devices across aerospace, industrial automation, automotive manufacturing, energy, healthcare and semiconductors. These are sectors in which a cyberattack can be particularly disruptive.
The company’s latest product, Photon, is a runtime security solution intended to prevent attacks at the kernel level of a device. Cuozzo said the same supply chain that supports connected devices also supports physical AI. That gives Exein a route to cover AI-powered robots, drones, self-driving cars, sensors, smart appliances and other edge devices running models.
Cuozzo also pointed to a changing threat environment. He said open-source models that can operate without guardrails are making it easier and cheaper to target physical devices in new ways. Exein has seen an increase in what he calls machine-speed attacks.
Product plans and international expansion
Exein is training a foundational model for Physical AI security using machine data and telemetrics, with a target of the first quarter of 2027 for readiness. Before then, it plans to use the new capital for mergers and acquisitions that complete its product portfolio, as well as hiring to speed expansion in the United States and Asia Pacific.
Asia Pacific currently accounts for half of Exein’s revenue. Cuozzo described operating across three continents as the company’s biggest challenge, while saying that footprint has delivered results. Exein reports 400% year-on-year growth, and said its valuation has risen thirty-fold since its Series B around two years ago.
Regulatory backdrop
The European Union’s Cyber Resilience Act may add support to the market Exein serves. Its reporting obligations began last week, and the Act is due to take full effect in December 2027. It requires manufacturers to make sure digital products are safe from cyber threats.
For businesses building or buying connected, AI-enabled equipment, Exein’s raise highlights the operational need to evaluate protections inside devices alongside network security. Supplier relationships, runtime controls and regulatory duties are all becoming relevant to how physical products are secured.