An Italian cybersecurity start-up specializing in protecting internet-connected devices has secured $270 million in new funding amid growing concerns over AI-driven cyberattacks. Exein, founded by Gianni Cuozzo, focuses on safeguarding a wide range of devices—from robots and drones to household appliances such as air conditioners and lightbulbs—against increasingly sophisticated digital threats.

Cuozzo emphasized that the rise of artificial intelligence has significantly enhanced hackers’ capabilities, making it easier for them to target and compromise connected machinery. He noted that attackers currently hold the advantage, necessitating innovative defensive measures. Exein’s approach involves embedding AI-based security directly into the firmware of devices during manufacturing, aiming to provide “machine-based protection in a world of machine-based attacks.” The company reports that its technology is now integrated into more than two billion devices globally.

The recent investment round, led by San Francisco-based venture capital firm Headline, values Exein at $1.7 billion—more than twice its valuation of $770 million from a funding round nine months earlier. Clarey Zhu, a partner at Headline, described securing the physical world as a defining cybersecurity challenge for the coming decade. Following this funding, Exein ranks as the second most valuable private cybersecurity company in Europe, surpassed only by Lithuania’s Nord Security, valued at $3 billion.

Cuozzo, who began hacking game consoles and iPods as a teenager, highlighted the shift in the cyber threat landscape brought by AI. He pointed out that some hackers are leveraging open AI models developed by Chinese technology firms, which are perceived as more adaptable for offensive cyber operations compared to those from U.S. companies.

The expansion of internet-connected devices worldwide has broadened the attack surface, enabling malicious actors to exploit everything from industrial machinery to everyday consumer products. Exein is working on its own foundational AI model dedicated to “physical AI” security, with plans to launch the platform next year.

Cuozzo also noted a rise in ransomware attacks targeting industrial equipment, where criminal groups gain control of factory machinery and demand payments to restore access. He added that governmental agencies remain focused on protecting critical infrastructure and defense-related systems from similar threats.

As AI-powered cyberattacks escalate, companies like Exein are positioning themselves at the forefront of efforts to secure the increasingly interconnected physical landscape.