Tenex Raises $250 Million as AI Security Spending Accelerates

Cybersecurity startup Tenex has raised $250 million in new funding at a valuation exceeding $1 billion.

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.