WitnessAI Raises $58M to Expand Global AI Security Presence

WitnessAI, a startup focused on AI security, has successfully secured $58 million in funding aimed at advancing its product innovation and facilitating global expansion. Led by Rick Caccia, a former executive at Palo Alto Networks, the company plans to use these resources to enhance policy enforcement and offer customized solutions for managed service providers while developing localized interfaces for international markets.

Caccia noted that WitnessAI already has a foothold in various major industries, stating, “We’ve onboarded the top three leaders across six significant sectors.” With an optimistic outlook on market demand, Caccia sees this funding as a vital step toward boosting international growth.

Founded in 2023, WitnessAI has expanded to a workforce of 73 and previously raised $27.5 million in a Series A funding round led by GV and Ballistic Ventures. Leveraging his extensive experience in cybersecurity marketing, Caccia aims to position the company as a leader in shadow AI detection and intention classification.

Why Two-Way Observability Matters in Agentic AI

The recent funding round, led by Sound Ventures, which has stakes in prominent AI entities like OpenAI, is designed to facilitate long-term growth without significant equity dilution. Caccia emphasized the importance of a funding size that adequately supports their ambitions without compromising ownership stakes.

WitnessAI’s focus for 2026 includes the detection of unauthorized AI agents within networks while tracking command flows between large language models and various agents. This infrastructure-level network approach provides comprehensive visibility into AI operations without requiring software installation on individual devices, thereby enhancing overall network security.

Challenges Facing MSSPs and MDR Vendors

The mobilization of AI tools within enterprises has created a pressing need for enhanced security measures. Many managed security service providers (MSSPs) and managed detection and response (MDR) vendors are struggling to identify effective strategies for secure AI adoption. Caccia noted that these firms demand modular, API-driven solutions to integrate WitnessAI’s technology into their existing management frameworks.

Given the shifting landscape, Caccia highlighted that clients are increasingly inquiring about MSSPs’ capabilities to support secure AI initiatives. The traditional approach—a reliance on multiple security products—is often inefficient and fragmented, prompting a need for more unified solutions.

As WitnessAI enters the market, it competes with established security vendors such as Zscaler and Palo Alto Networks. However, its advantage lies in providing comprehensive protection across diverse user profiles, including employees using third-party tools and customers interacting with AI solutions.

The emergence of WitnessAI represents a pivotal shift in how organizations manage AI security vulnerabilities. By leveraging advancements in AI and incorporating two-way observability, the firm is positioning itself not only to meet existing security challenges but also to anticipate future risks in the rapidly evolving cybersecurity landscape.