Exein Raises $270m at $1.7bn Valuation to Build the Security Layer for Physical AI

Exein, a global leader in embedded IoT cybersecurity, Gianni Cuozzo, Giovanni Alberto Falcione, Gerardo Gagliardo, and Gary Walshe, has raised $270 million in new funding at a $1.7 billion valuation, led by Headline, with participation from Sofina, Goldman Sachs, EIB Group through the European Tech Champions Initiative (ETCI), KfW Capital and T.Capital, plus existing investors Balderton, HV, Intrepid Growth Partners, 33N Ventures, Lakestar, Supernova Invest, Blue Cloud Ventures and Geodesic Capital. It closed significantly oversubscribed.

Security Built for Machine Speed.

Exein is seeing around 5,000 new, non-repetitive attacks each week across its network of two billion devices, five times last year’s volume. Attackers are increasingly using AI to target intelligent devices that make real-world decisions, from vehicles and power grids to healthcare equipment.

The risk extends beyond data theft: a compromised machine can take physical action. Exein’s response includes Photon, a preemptive runtime architecture launched earlier this year that operates at the kernel level to block malicious execution before it occurs.

"AI is moving out of the cloud and into the physical world, and this is the transition Exein was built for. We've developed deep expertise in how machines operate, invested heavily in the technology needed to protect them and built a global footprint that gives us an understanding of machines at a scale few others can match. Frontier models are pushing the patch window to zero. Attacks now happen at machine speed, so defense has to as well. Physical AI is the natural next step for Exein: we're building machine-time security for machine-time attacks."

- Gianni Cuozzo, Founder & CEO at Exein

A Foundation Model Trained on Machine Behavior.

Exein is training a proprietary foundation model for Physical AI security using two years of machine telemetry from more than two billion devices. Unlike models trained primarily on human-generated text, it learns from real-world machine behavior, creating a dataset that is difficult to replicate.

The model will power autonomous security agents capable of understanding and defending the systems they operate on at machine speed, without waiting for human intervention. The agentic security architecture is expected by the end of 2026, with the first foundation models targeted for Q1 2027.

"As AI moves into robots, vehicles, and critical infrastructure, securing the physical world will become one of the defining cybersecurity challenges of the next decade. Exein's deep expertise in embedded systems and unique machine data give it a powerful advantage as it scales globally, and that advantage traces back to the team. Gianni and his team have incredible technical and commercial depth, they put customer trust above all else, and they have always chosen the harder, long-term-oriented path. We're honoured to help them build a global leader in Physical AI security."

- Clarey Zhu, Partner at Headline.

Expanding Credit Capacity for M&A.

Alongside the equity round, Exein is expanding its revolving credit facility, led by J.P. Morgan with KfW as an additional lender. The increased credit capacity will support potential acquisitions across Europe and the US as the company expands its global footprint.

The facility builds on Exein’s December 2025 financing and reflects continued confidence from existing lenders and investors. With additional equity and credit available, the company is positioned to pursue M&A opportunities as they emerge.

Building a European Champion for the Global Market.

Since its previous funding rounds, Exein has established its APAC headquarters in Taiwan and expanded partnerships across semiconductors, industrial computing, and connected infrastructure. The company has also opened a legal entity in Japan, with further expansion planned for Q4 2026, and plans to open an office in South Korea by 2027.

The new funding will support Exein’s US expansion, including team growth and a new Bay Area office, as the company aims to establish a global standard for Physical AI security from Europe. Sofina Managing Director Maxence Tombeur said the firm backed Exein’s long-term vision and its plans to scale globally.

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