Tenex Secures $250 Million to Scale AI Security Services Amid Cyber Threat Surge

Google Partner Tenex Raises $250 Million for AI Security Services

Tenex.ai, an artificial intelligence cybersecurity startup, has raised $250 million in funding at a more than $1 billion valuation, the latest sign of investor demand for companies that use AI to combat cyber attacks. Crosspoint Capital led the financing, with participation from Shield Capital and DeepWork Capital, Tenex is set to announce on Tuesday. The Sarasota, Florida-based startup has previously raised capital from Andreessen Horowitz. The new funding coincides with a flurry of activity in the market for firms that use AI to defend against malicious actors, including those who may seize on artificial intelligence to automate their own attacks. Earlier this month, OpenAI agreed to buy Promptfoo, a company that enables large businesses to find and fix security issues in AI models. OpenAI and Anthropic PBC have also unveiled AI agents meant to help security teams spot and patch vulnerabilities in large databases. Tenex, made up of former chief information security officers and financial services professionals, is selling an AI-enabled managed detection and response service that finds, tracks and responds to security threats. The product uses AI automation and agents, blended with expertise and oversight from real people. The company has also partnered with the biggest cloud computing providers, including Alphabet Inc.'s Google, Microsoft Corp. and Amazon.com Inc., to deliver those companies' security products. "We basically believe that the market is going towards the hyperscalers as the security platform winners," said Tenex Chief Executive Officer Eric Foster, referring to the large cloud providers. "We believe we are best positioned to be the services partner and especially the AI services partner to them." While some AI security startups focus on customers testing and "attacking" their own code to find flaws before bad actors do, Tenex's technology is aimed at helping firms find and kick out actual attackers. "The AI security space has become a gold rush," Foster said. "We all correctly identify that this is one of the most obvious and provably return-driving uses of artificial intelligence in the enterprise. This is toil and drudgery that's highly data-driven that the AI can actually make a really strong difference on." Other firms in this sector face headcount challenges because each new customer has a complicated mix of software and networks that need to be protected that they often have to staff a specialist for every client, said Greg Clark, managing partner at Crosspoint and a former CEO of Symantec. "Artificial intelligence and the ability to automate security operations changes that game completely," he said. Tenex currently has nearly 100 employees and expects its headcount to reach 300 by the end of 2026. The startup is also set to announce that Bashar Abouseido, the former chief information security officer at Charles Schwab Corp., has joined as president.

Tenex Raises $250 Million as AI Security Spending Accelerates | PYMNTS.com

According to a Tuesday (March 31) Bloomberg report, the fundraise signaled continued investor demand for artificial intelligence (AI) tools that can defend against automated cyber threats. The Sarasota, Florida-based company's funding round was led by Crosspoint Capital, with participation from Shield Capital and DeepWork Capital. The raise comes amid a broader surge in enterprise spending on AI-driven security, as organizations confront a threat landscape where attackers are also deploying automation and machine learning to scale attacks. Tenex positions itself within a fast-growing segment of the market focused on managed detection and response, or MDR, but with an emphasis on AI agents embedded into security operations. Its platform identifies, tracks and responds to threats in real time, combining automated systems with human oversight, according to Bloomberg. That hybrid model reflects a broader shift in enterprise security. Rather than relying solely on tools that scan for vulnerabilities before deployment, companies are prioritizing systems that can actively detect and remove attackers already inside their networks. Tenex's approach centers on operational response rather than just preemptive testing, aligning with rising demand for continuous, real-time defense. The company has also aligned itself closely with hyperscale cloud providers, partnering Google, Microsoft and Amazon to deliver integrated security services. Chief Executive Eric Foster said the market is consolidating around these large cloud ecosystems, with service providers like Tenex aiming to become the AI layer that operationalizes security within them, according to Bloomberg. "The market is going towards the hyperscalers as the security platform winners," Foster said, adding that Tenex is positioning itself as a key AI services partner within that ecosystem. The funding arrives during what Foster described as a "gold rush" in AI security, as enterprises look for measurable returns from AI investments. Security operations present a clear target for automation. Investors and operators increasingly view the category as one of the few areas where AI can deliver immediate efficiency gains by reducing response times and lowering staffing requirements. The trend also highlights a parallel challenge. As reported by PYMNTS, the weakest link in fraud prevention remains human behavior, even as AI systems scale detection and response. At the same time, PYMNTS Intelligence found that chief operating officers are increasingly leveraging generative AI to reduce data security losses, pointing to a dual reality where automation strengthens defenses while human vulnerabilities continue to be exploited.