Exein Raises $270M at $1.7B Valuation to Build Security Layer for Physical AI

Rome-based cybersecurity company Exein has raised $270 million in new funding at a $1.7 billion valuation as it expands its focus on securing AI-powered machines operating in the physical world.

The company is building cybersecurity infrastructure for what it calls Physical AI - intelligent systems that can perceive their surroundings, make decisions and take actions through robots, drones, autonomous vehicles and other connected machines.

The latest financing is led by Headline, with participation from Sofina, Goldman Sachs, the European Investment Bank Group's ETCI, KfW Capital and T.Capital. Existing investors including Balderton, HV, Intrepid Growth Partners, 33N Ventures, Lakestar, Supernova Invest, Blue Cloud Ventures and Geodesic Capital also participated.

The financing was significantly oversubscribed, according to Exein.

Exein's Valuation Has Grown 30x in Two Years

Exein's latest funding comes after a period of rapid commercial and international expansion.

The company says its valuation has increased thirty-fold over the past two years, while first-half 2026 annual recurring revenue grew four times year over year.

Exein also expanded its existing revolving credit facility led by J.P. Morgan, with KfW joining as an additional lender.

The company currently has technology deployed across more than two billion connected devices, giving it access to a large volume of machine-generated data that it is using to develop its next generation of security technology.

Securing AI at Machine Speed

As AI moves from cloud-based software into physical machines, cybersecurity requirements are changing.

Autonomous systems may need to detect and respond to threats without waiting for a human operator. Exein has therefore focused on embedded and runtime security - protecting systems at the point where code actually executes.

Earlier in 2026, the company launched Photon, its preemptive runtime security architecture. Photon operates at the kernel level and is designed to block malicious execution before an attack can run.

The approach is particularly relevant to autonomous machines where security responses may need to happen at the same speed as the machine's operations.

Exein says it is currently seeing approximately 5,000 new, non-repetitive attacks across its network every week, five times the level recorded a year earlier.

Building a Foundation Model for Physical AI Security

A major part of Exein's next phase is the development of a proprietary foundation model specifically designed for Physical AI security.

The model has been in development for two years and is being trained using machine telemetry generated through Exein technology deployed across more than two billion devices.

Rather than relying primarily on human-generated data, Exein's model is designed to learn from information showing how machines actually operate.

The company intends to use the model to power autonomous security agents capable of understanding and protecting the systems they operate on without waiting for human intervention.

Exein plans to introduce its new agentic security architecture by the end of 2026, with its first foundation models expected in the first quarter of 2027.

Expanding Across the US and APAC

Exein already operates across Europe, Asia-Pacific and the United States, with approximately half of its revenue coming from APAC.

The new funding will support further expansion in the US and APAC as investment in robotics, autonomous systems and Physical AI accelerates.

Over the next two years, Exein plans to increase its US hiring, customer base and partnerships, while targeting a new office in the San Francisco Bay Area.

The company will also continue evaluating acquisitions to expand its technology platform and international footprint.

Since its previous funding round in December 2025, Exein has established its APAC headquarters in Taiwan and added partnerships across semiconductors, industrial computing and connected infrastructure.

Building Cybersecurity for the Physical AI Era

Exein was founded by Gianni Cuozzo and is headquartered in Rome, with operations across Europe, APAC and the US.

Its technology is used across industries including industrial automation, automotive, energy, healthcare, semiconductors, aerospace and robotics.

With $270 million in fresh capital, the company is now expanding from runtime protection toward AI-powered autonomous security for machines.

As AI systems increasingly move beyond screens and servers into robots, vehicles and connected infrastructure, Exein is positioning its combination of embedded security, machine telemetry and AI models as infrastructure for protecting these systems.