OpenAI Invests in Adaptive Security to Tackle AI-Powered Cyber Threats

OpenAI has taken a significant step into the cybersecurity domain by making its first-ever investment in Adaptive Security, a New York-based startup specializing in AI-powered defense against social engineering and deepfake attacks. The $43 million Series A funding round, co-led by OpenAI’s Startup Fund and Andreessen Horowitz (a16z), signals a growing focus on addressing the vulnerabilities created by generative AI technologies.

Adaptive Security’s platform leverages artificial intelligence to simulate realistic cyberattacks, such as deepfake phone calls and phishing emails, enabling companies to train employees to detect and respond effectively. For instance, the system might mimic a phone call from a company executive requesting sensitive information—a tactic that has become increasingly convincing due to advancements in generative AI. Beyond simulations, the platform provides tailored training for employees who fall for these tests, helping organizations strengthen their defenses against evolving threats.

The urgency of this investment is underscored by the increasing prevalence of AI-driven cyberattacks. In recent years, deepfake technology has been used to impersonate public figures and executives in real-time scenarios, leading to financial losses and even attempts to manipulate foreign policy. Notable incidents include hackers cloning voices to trick bank managers into wiring millions of dollars or targeting cybersecurity executives with sophisticated fraud schemes.

Brian Long, CEO and co-founder of Adaptive Security, emphasized the critical nature of these threats: “Deepfake phone calls, AI-generated emails, and SMS phishing are evolving rapidly. Attackers can now create AI personas of anyone, turning routine communications into sophisticated fraud attempts.” With over 100 enterprise clients since its launch in 2023, Adaptive Security aims to use the new funding to expand its engineering team and enhance its platform capabilities.

OpenAI’s involvement reflects its acknowledgment of the risks posed by generative AI tools like ChatGPT being exploited for malicious purposes. Ian Hathaway, partner at OpenAI’s Startup Fund, remarked that Adaptive Security is building an “AI-native defense platform that evolves as fast as attackers,” making it an essential solution for businesses navigating this new era of cybersecurity challenges.

The broader market for AI-powered cybersecurity solutions is growing rapidly as organizations seek defenses against increasingly sophisticated threats. Competitors such as Cyberhaven and GetReal have also raised significant funding recently to address similar vulnerabilities. However, Adaptive Security’s unique focus on simulating attacks for training purposes positions it as a leader in combating social engineering scams fueled by artificial intelligence.

As AI continues reshaping the threat landscape, OpenAI’s investment in Adaptive Security highlights the importance of proactive measures against emerging cyber risks. This partnership could pave the way for more collaborations between generative AI leaders and cybersecurity innovators in the fight against digital crime.