AI Security Startup Outtake Lands $40M Backed by Tech Titans: A Deep Dive
In the rapidly evolving landscape of cybersecurity, a new player is making waves. Outtake, an agentic cybersecurity platform focused on combating digital identity fraud, has secured a $40 million Series B funding round. While this figure might seem modest compared to the massive investments seen in some AI ventures, the caliber of investors backing Outtake speaks volumes. This funding signals a critical shift in how enterprises are approaching the increasingly sophisticated threat of online impersonation and brand protection, particularly in the age of generative AI.
The Powerhouse Behind the Investment
The Series B round was spearheaded by ICONIQ’s Murali Joshi, a prominent investor known for his successful bets on companies like Anthropic, Datadog, Drata, and 1Password. But the true standout is the impressive roster of angel investors who participated. The list reads like a who's who of the tech industry, including:
- Satya Nadella, CEO of Microsoft
- Nikesh Arora, CEO of Palo Alto Networks
- Bill Ackman, CEO of Pershing Square Holdings
- Shyam Sankar, CTO of Palantir
- Trae Stephens, co-founder of Anduril
- Bob McGrew, Former OpenAI VP
- Guillermo Rauch, CEO of Vercel
- John Donovan, Former AT&T CEO
This level of support from industry leaders underscores the significant potential of Outtake’s technology and the growing urgency to address the challenges of digital misrepresentation.
The Problem Outtake Solves: The Rise of AI-Powered Fraud
Founded in 2023 by former Palantir engineer Alex Dhillon, Outtake tackles a problem that has become exponentially more difficult in recent years: identifying and neutralizing malicious actors impersonating individuals and organizations online. These threats manifest in various forms, including:
- Impersonation accounts on social media and other platforms
- Malicious domains mimicking legitimate company websites
- Rogue mobile applications designed to steal data
- Fraudulent online advertisements spreading misinformation or malware
Traditionally, detecting and removing these threats has been a largely manual and labor-intensive process, struggling to keep pace with the sheer volume and velocity of attacks. The advent of artificial intelligence (AI) has only exacerbated the problem, empowering attackers to create more convincing and rapidly deployed fraudulent schemes. AI-generated deepfakes, sophisticated phishing campaigns, and automated bot networks are making it increasingly difficult to distinguish between legitimate and malicious online activity.
How Outtake's Agentic Cybersecurity Platform Works
Outtake differentiates itself by leveraging AI to automate the detection, investigation, and takedown of digital identity fraud. The company’s “agentic” platform doesn’t just identify potential threats; it actively takes steps to mitigate them. As Murali Joshi of ICONIQ explained to GearTech, “They’ve turned a ‘human problem’ into a ‘software problem.’ Seeing AI take down digital frauds in real-time is a game-changer for brand safety.”
The platform operates by:
Automated Threat Detection
Outtake’s AI algorithms continuously scan the internet for instances of digital misrepresentation, identifying potential threats based on a variety of factors, including domain registration information, website content, social media activity, and app store listings.
Rapid Investigation & Verification
Once a potential threat is identified, Outtake’s platform automatically investigates and verifies its legitimacy, leveraging machine learning to analyze patterns and anomalies. This significantly reduces the time and effort required for manual investigation.
Automated Takedown Requests
Upon confirmation of malicious activity, Outtake automatically initiates takedown requests with relevant platforms, such as social media networks, domain registrars, and app stores. This streamlined process ensures that fraudulent content is removed quickly and efficiently.
Key Customers and Impressive Growth Metrics
Outtake has already secured a notable client base, including high-profile organizations like OpenAI, Pershing Square, AppLovin, and various federal agencies. In fact, OpenAI highlighted Outtake as a prime example of an agentic startup built on its reasoning models in July 2025, further validating the company’s innovative approach.
The company is experiencing substantial growth across key metrics:
- Annual Recurring Revenue (ARR) has increased sixfold year-over-year.
- The customer base has grown more than tenfold.
- In the past year alone, Outtake’s systems have scanned over 20 million potential cyberattacks.
These figures demonstrate the strong demand for Outtake’s solution and its effectiveness in addressing the growing threat of digital identity fraud.
The Broader Implications for AI Security
Outtake’s success is indicative of a broader trend in the cybersecurity industry: the increasing reliance on AI to combat AI-powered threats. As attackers continue to leverage AI to develop more sophisticated and evasive attacks, defenders must adopt similar technologies to stay ahead. This arms race is driving innovation in areas such as:
- AI-powered threat intelligence: Using AI to analyze vast amounts of data to identify emerging threats and vulnerabilities.
- Automated incident response: Leveraging AI to automate the process of responding to security incidents, reducing response times and minimizing damage.
- Behavioral biometrics: Using AI to analyze user behavior to detect anomalies that may indicate fraudulent activity.
The $40 million investment in Outtake is not just a vote of confidence in the company itself, but also a signal that the market is ready for AI-driven cybersecurity solutions. The future of cybersecurity will undoubtedly be shaped by the ongoing battle between AI-powered attackers and AI-powered defenders.
Looking Ahead: The Future of Digital Identity Protection
Outtake’s agentic cybersecurity platform represents a significant step forward in the fight against digital identity fraud. By automating the detection, investigation, and takedown of malicious activity, the company is helping organizations protect their brands, customers, and reputations. As AI continues to evolve, the need for sophisticated cybersecurity solutions like Outtake will only become more critical. The company’s impressive growth trajectory and the backing of industry titans suggest that it is well-positioned to become a leader in the emerging field of AI-powered digital identity protection. The focus will likely shift towards proactive threat hunting and predictive security measures, utilizing AI to anticipate and prevent attacks before they even occur. Furthermore, expect to see increased integration with existing security infrastructure and a greater emphasis on data privacy and compliance.
The rise of Outtake and similar companies highlights a crucial point: in the age of AI, cybersecurity is no longer just about reacting to threats; it’s about proactively anticipating and neutralizing them with the power of intelligent automation.