AI Security Startup Outtake Raises $40M to Automate Digital Identity Fraud Detection

The AI security startup Outtake raises $40M in a Series B round focused on automating digital identity fraud detection. The funding highlights growing urgency around impersonation risks across enterprises. Outtake develops an agentic cybersecurity platform that detects, investigates, and takes down identity fraud at scale. The company was founded in 2023 by Alex Dhillon, a former Palantir engineer.

This round may appear modest by recent AI standards. However, the investor roster signals strong conviction. The round was led by Iconiq’s Murali Joshi. The participation of prominent technology executives and founders underscores confidence in Outtake’s approach to a problem that remains largely manual across organizations.

Why the AI Security Startup Outtake Raises $40M Matters for Enterprises

The AI security startup Outtake raises $40M at a time when digital impersonation has become faster and more convincing. According to the company, AI has accelerated attacker capabilities. As a result, manual detection methods struggle to keep pace.

Outtake’s platform automates the identification and takedown of impersonation accounts, malicious domains, rogue applications, and fraudulent advertisements. Historically, these tasks required human-intensive workflows. Investors describe this shift as turning a “human problem” into a “software problem.” That change positions Outtake within a critical layer of modern enterprise security operations.

Investor Confidence Signals a Platform Shift in AI Security

Iconiq led the Series B after conducting product reviews and customer diligence. Murali Joshi stated that skepticism turned into belief once results became visible. The platform’s ability to take down digital frauds in real time reframed brand safety as a scalable software function.

Angel investors in the round include Satya Nadella, Nikesh Arora, Bill Ackman, Shyam Sankar, Trae Stephens, Bob McGrew, Guillermo Rauch, and John Donovan. Their involvement reflects alignment around the urgency of identity fraud automation in enterprise environments.

Founder Background and Network Effects Behind the Funding

Alex Dhillon’s background at Palantir played a central role in the company’s early momentum. He worked directly with Shyam Sankar while part of an experimental product team. That experience led to introductions across current and former Palantir leaders. Over time, those relationships converted into investment commitments.

This network effect did not replace product validation. Instead, it accelerated access to decision-makers once the technology demonstrated value at scale.

Commercial Traction Validates the AI Security Startup Outtake Raises $40M

Outtake reports significant business growth. Annual recurring revenue increased sixfold year over year. Its customer base expanded more than tenfold during the same period. In the past year, the company’s systems scanned 20 million potential cyberattacks.

Customers include OpenAI, Pershing Square, AppLovin, and federal agencies. OpenAI profiled Outtake in July 2025 as an example of an agentic startup built on its reasoning models. These indicators reinforce why the AI security startup Outtake raises $40M despite a cautious funding environment.

Enterprise Implications of Automating Digital Misrepresentation

Digital identity fraud now impacts brand trust, regulatory exposure, and customer confidence. Automation changes the operating model for security teams. Instead of chasing incidents, enterprises can shift toward continuous monitoring and real-time takedown.

Organizations evaluating similar capabilities often explore partners that understand global operating environments. In this context, readers may consider platforms and advisory ecosystems that support enterprise-grade deployment. Explore the services of Uttkrist. Our services are global in nature and highly enabling for businesses of all types. Drop an inquiry in your suitable category: https://uttkrist.com/explore/

As AI-driven impersonation continues to scale, how prepared are enterprise security teams to replace manual defenses with software-first protection models?

Explore Business Solutions from Uttkrist and our Partners’, https://uttkrist.com/explore

qlango.com