Adaptive Security, a cybersecurity company with expertise in anti-AI threats like deepfakes, has raised $43 million in a funding round that was co-led by Andreessen Horowitz (a16z) and the OpenAI Startup Fund. This is the first time OpenAI has invested in the cybersecurity space. The investment round also attracted investors such as Abstract Ventures, Eniac Ventures, CrossBeam Ventures, and K5, as well as CEOs from Google, Workday, Shopify, Plaid, and Paxos.
Co-founded by serial founders Brian Long and Andrew Jones, Adaptive Security is building an AI-first defense platform that will guard enterprises against next-gen cyberattacks, such as deepfake social engineering attacks. Its platform features AI-created deepfake attack simulation, real-time threat triage, next-generation security training, and AI-driven risk scoring.
By mimicking authentic AI attacks on different communication paths like voice, SMS, and email, the solution aids organizations in finding weaknesses and making their employees more aware to identify and handle advanced threats properly. With the rise of AI-based social engineering, the complexity and volume of cyberattacks have risen considerably.
Attackers are now capable of developing extremely realistic AI personas imitating colleagues, executives, or even the victims themselves. These AI personas can conduct phone calls or send emails, or text messages that are virtually indistinguishable from authentic communications. This has resulted in an explosion of phishing scams and social engineering attacks, which has made it essential for companies to implement proactive security measures. Adaptive Security’s solution helps solve this problem by giving organizations the capabilities to conduct reconnaissance using AI personas in real-world attacks.
For instance, employees might receive a call from a deepfake version of a company executive requesting a wire transfer. If an employee falls for the simulation, the system immediately flags the risk and delivers personalized training to prevent future incidents. This approach not only helps in identifying and mitigating vulnerabilities but also enhances the overall security awareness within the organization.
The investment will be used to double Adaptive Security’s research and development staff to combat the increasing threat of AI-based cyberattacks. In its first month of public operations in January, the company has quickly expanded its customer base to more than a hundred enterprise customers, including high-profile brands such as First State Bank, Podium, The Dallas Mavericks, and BMC. This swift adoption is a testament to the urgent need for effective solutions to meet the changing face of cyber threats.
The venture from leading companies like a16z and the OpenAI Startup Fund reflects growing awareness of the significance of cybersecurity in the era of artificial intelligence. With advancing AI technologies, the threat of their misuse for cyberattacks becomes greater, requiring the creation of strong defense strategies. Adaptive Security’s strategy of using AI to combat AI-powered threats is an innovative approach to the fight against cybercrime.
In summary, Adaptive Security’s latest round of funding marks a turning point in the world of cybersecurity, highlighting the urgency of the need for high-level solutions to meet the threats of AI-driven attacks. Backed by top-tier investors and with a clear vision for innovation, Adaptive Security is well set to take a leading role in making businesses more resilient to sophisticated cyberattacks.
