Europe has a new unicorn: Italian startup Exein has raised $270 million, valuing the company at $1.7 billion. This funding round is fueled by Exein's innovative approach to cybersecurity for physical AI, an evolution from its initial focus on IoT.

CEO Gianni Cuozzo explains that every device, regardless of its connectivity, should be able to defend itself. With its latest product, Photon, Exein aims to prevent attacks at the kernel level, requiring close partnerships with manufacturers and silicon vendors. This approach has enabled Exein to secure over 2 billion connected devices in critical sectors.

The rise of physical AI, which includes AI-powered robots, drones, and self-driving cars, is driving Exein's growth. Investors agree, with the latest round significantly oversubscribed, and the company's valuation increasing thirtyfold since its Series B.

Exein is also addressing the growing threat of machine-speed attacks, which are being facilitated by open-source models. The company is training a foundational model for physical AI security, expected to be ready in the first quarter of 2027. With plans to expand in the U.S. and Asia Pacific, and to leverage the European Union's Cyber Resilience Act, Exein is poised for continued growth.