Outtake Secures $40M, Backed by Nadella and Ackman, to Combat AI-Powered Cyberthreats

In a significant boost for the burgeoning field of AI-driven cybersecurity, Outtake, a startup founded by former Palantir engineer Alex Dhillon, has announced the close of a $40 million funding round. The investment, led by Iconiq, saw participation from a formidable roster of tech heavyweights, including Microsoft CEO Satya Nadella, Palo Alto Networks CEO Nikesh Arora, and billionaire investor Bill Ackman. This substantial capital injection underscores a growing industry recognition of the urgent need for sophisticated, autonomous security solutions to combat the escalating threat of AI-powered cyberattacks.

Outtake's AI-Agent Approach to Cybersecurity

Outtake’s core offering revolves around autonomous AI agents designed to proactively detect and neutralize cyberthreats, a departure from traditional security models that often rely on human intervention after an attack has been identified. This cutting-edge technology handles a spectrum of security tasks, from email verification to comprehensive scanning across a company’s digital infrastructure. Dhillon emphasizes the necessity of "agent tech solutions like Outtake, defending your neighborhood" in an era of "always-on security." The company's innovative approach aims to match the speed and complexity of modern cyber threats, many of which are now also powered by artificial intelligence.

Impressive Growth and Marquee Clientele

Since its inception in 2023, Outtake has rapidly built an impressive portfolio of clients, signaling strong market validation for its technology. Key customers include OpenAI, mobile gaming giant AppLovin, Bill Ackman's Pershing Square, and several federal agencies. The company has also secured luxury retail brands as clients, demonstrating the broad applicability of its platform across diverse sectors. Outtake’s growth metrics are equally compelling; its annual recurring revenue surged sixfold year over year, while its enterprise customer base expanded more than tenfold. Last year alone, Outtake's systems processed 20 million potential cyberattacks, highlighting the relentless nature of the threat landscape it addresses, according to The Tech Buzz report.

A "Who's Who" of Tech Investors

The $40 million funding round, led by venture firm Iconiq, also saw contributions from CRV, S32, and an array of individual investors whose names resonate deeply within the tech and finance industries. Beyond Nadella, Arora, and Ackman, investors include Anduril co-founder Trae Stephens and Outtake founder Dhillon's former boss at Palantir, tech chief Shyam Sankar. This coalition of investors, many of whom lead companies at the forefront of enterprise technology and security, suggests a strong belief in Outtake's autonomous AI agent model as a critical component in future cybersecurity strategies. Iconiq general partner Murali Joshi, who will join Outtake's board, cited the company's "fundamentally differentiated" product and strong customer feedback as key motivators for their investment.

The Urgency of AI-Powered Defense

Alex Dhillon's journey to establish Outtake was spurred by a perceived crisis: the inability of traditional security tools to keep pace with the explosion of AI-powered cyberthreats. His nearly five years at Palantir, building AI platforms, provided him with a profound understanding of enterprise security challenges. Dhillon contends that AI itself has significantly heightened both the sophistication and velocity of cyberattacks, necessitating a "trust layer for the Internet." The timing of this funding round is particularly pertinent amid broader discussions surrounding AI safety and security, as the rapid deployment of AI systems inadvertently creates new vulnerabilities for malicious actors to exploit. Outtake's premise is that autonomous AI agents are the necessary counter to AI-powered attacks, turning the very technology that amplifies threats into a tool for defense.

Scaling to Meet Demand in an Evolving Threat Landscape

With this fresh injection of capital, Dhillon plans to expand Outtake's go-to-market operations, with a particular focus on bolstering its engineering and product teams. Despite its impressive achievements and high-profile backing, Outtake remains a relatively compact organization with 35 employees. This funding, however, positions the company for significant growth. Including this round, Outtake has now raised a total of $60 million since its founding, building on a $16.5 million Series A round from last April and an initial $3.5 million in seed funding. The company faces the dual challenge of scaling rapidly enough to meet escalating demand while continuously innovating to stay ahead of an ever-evolving and increasingly sophisticated threat landscape, ensuring its AI agents continue to "man the walls" against persistent cyberattacks, as noted by The Tech Buzz.