AI Security and Physical AI Attract Concentrated Startup Capital

AI-enabling markets are drawing substantial venture funding: HiddenLayer raised $100 million as it expanded into agent-runtime security, reporting more than 10x ARR growth and entering a market Gartner expects to grow from $2.83 billion to $4.78 billion. Physical-AI perception company Lyte raised $165 million at a reported $1.6 billion valuation, underscoring investor interest in robotics infrastructure; commercial traction, technical validation and durable unit economics remain unproven.