AI Security Firm Upwind Raises Funds at $3.8 Billion Value

Upwind Security, a startup offering cybersecurity for artificial intelligence and cloud applications, is raising fresh financing that values the company at $3.8 billion, according to people familiar with the matter.

Bessemer Venture Partners is leading the $300 million investment in the San Francisco-based startup, with participation from some existing investors, the people said, asking not to be identified as the information isn’t public.

Upwind “is continuously receiving and evaluating offers from both new and existing investors, and another funding round is a realistic possibility, with the aim of capturing greater market share more rapidly,” the company said in a statement. A representative declined to comment on the terms.

A spokesperson for Bessemer didn’t respond to a request for comment.

AI models from Anthropic PBC, OpenAI and Meta Platforms Inc. have been caught hacking outside systems, fueling concerns that the technology could supercharge attacks. While some AI companies have called for businesses and governments to do more to defend themselves, investors are flocking to cybersecurity companies and startups promising protection.

Upwind has offered a security platform that detects threats in companies’ cloud infrastructure and gives them visibility into those vulnerabilities. In May, the startup expanded the platform to mitigate risks from AI.

The startup has raised more than $400 million since its founding in 2022, including $250 million in January at a reported valuation of $1.5 billion.

The company’s Chief Executive Officer Amiram Shachar sold his previous startup, IT management company Spot.io to data storage firm NetApp Inc. in 2020 for $450 million.