Italy’s Exein raises $270 million to protect connected devices

In short: Italian cyber security start-up Exein raised $270 million to expand its work protecting internet-connected devices from hacking, including attacks helped by AI tools.

What happened

Exein, a Rome-based start-up, said it has raised $270 million in new funding. The round was led by venture capital firm Headline, and it values Exein at $1.7 billion. That is more than double the $770 million valuation it got in a funding round nine months ago.

Exein sells security technology for internet-connected devices, including industrial machines, robots, drones, air conditioners, and even lightbulbs. The company says its tools are already used in more than two billion devices.

Founder and CEO Gianni Cuozzo told the Financial Times that AI is making it easier for hackers to break into devices by quickly studying how they work. He said many attackers use “open” AI models, meaning systems that can be adjusted more easily, including some made by Chinese tech companies.

Exein’s approach is to build protection into a device during manufacturing by placing it in the device’s firmware, which is the basic built-in software that controls how the device runs (like the device’s operating instructions). Exein is also developing its own “foundation model”, a large AI system trained to handle many tasks, designed to run directly on devices and react to attacks in real time. The company expects to launch this next year.

Why it matters

More everyday objects now connect to the internet, so the number of possible targets is growing fast. If hackers can take over factory equipment or building systems and demand ransom, the impact can reach beyond computers and into the physical world, including services people rely on.

Source: Financial Times