New Italian unicorn Exein rides the physical AI wave

Italian cybersecurity startup Exein has raised $270 million in a funding round led by Headline, valuing the company at $1.7 billion. The Rome-based firm says it provides a runtime security layer for connected devices and 'physical AI,' evolving from its original Internet-of-Things focus.

By AI NewsroomPublished 40 minutes agoUpdated 40 minutes ago0 views

New Italian unicorn Exein rides the physical AI wave

Why It Matters

Exein targets device-level protection for systems used in critical industries, a market that risks growing exposure as AI-capable devices proliferate and attackers gain access to more powerful open-source tools. Its technology and regulatory tailwinds such as the EU Cyber Resilience Act could shape how manufacturers secure edge devices running AI models.

Key Facts

funding: $270 million
lead investor: Headline
valuation: $1.7 billion
founded: 2018
ceo: Gianni Cuozzo

Exein announced a $270 million financing round led by Headline that values the company at $1.7 billion, making the Rome-based startup a new European unicorn. The round was reportedly significantly oversubscribed, and the company says its valuation has climbed roughly thirty-fold since its Series B two years ago and more than doubled since it raised equity and debt in December 2025 following a Series C.

The company’s core pitch is device-level self-defense: Exein develops runtime security that operates at the kernel level to block attacks on embedded systems, an approach embodied in its latest product, Photon. The startup has worked directly with original equipment manufacturers and silicon vendors since its 2018 launch, a strategy its leadership says was driven by the expected rise in connected devices.

Exein says it has secured more than 2 billion connected devices across sectors where breaches could be especially disruptive, including aerospace, industrial automation, automotive manufacturing, energy, healthcare and semiconductors. Asia Pacific currently contributes about half of the company’s revenue; Exein plans to use the new capital for acquisitions to broaden its product set and to hire as it pushes further into the U.S. and the Asia Pacific.

The company argues that an emerging wave of 'physical AI' — edge devices running models in robots, drones, self-driving vehicles, sensors and smart appliances — will increase demand for its protections. At the same time, Exein warns that attackers are gaining capabilities through open-source models that can run without guardrails, producing what the CEO calls "machine-speed attacks." To respond, the startup is training a foundational model for physical AI security on machine data and telemetry and expects the model to be ready in the first quarter of 2027.

Exein reports rapid expansion, saying it is growing about 400% year-on-year, and that coordinating operations across three continents has been a principal challenge. The firm also anticipates regulatory support from the EU’s Cyber Resilience Act: reporting obligations began last week and the law will take full effect in December 2027, requiring manufacturers to ensure digital products are protected against cyber threats.