Pluto Security has raised $42 million in funding to address the growing security risks posed by AI tools built by employees. The company plans to use the capital to develop protections for these homegrown AI applications, which often lack the safeguards of enterprise-grade software. The funding round underscores investor confidence in cybersecurity solutions tailored to the rise of employee-driven AI.
Why employee-built AI tools are a security blind spot
Employees are increasingly creating their own AI tools — from chatbots to data analysis scripts — to speed up work. But these tools are rarely built with security in mind. They can leak sensitive data, introduce vulnerabilities, or operate outside IT's visibility. Pluto Security aims to close that gap by providing security measures specifically for these employee-made AI applications.
The company's focus reflects a broader shift: as AI becomes more accessible, the line between developer and end-user blurs. That's a problem for security teams accustomed to controlling the software that enters their networks. Pluto's funding suggests investors see a market for tools that secure this new wave of shadow AI.
What the $42 million will fund
Pluto Security hasn't detailed exactly how the money will be allocated, but the company says the funding is intended to secure AI tools built by employees. That likely means expanding its product development, hiring, and go-to-market efforts. The investment will help Pluto scale its technology to meet demand from businesses worried about unvetted AI sprouting inside their walls.
The raise comes amid a surge of interest in cybersecurity startups that address AI-specific threats. While Pluto isn't the only player, its focus on employee-built tools sets it apart from vendors securing AI models or infrastructure. It's targeting the grassroots level where AI adoption often starts — with a single employee trying to automate a task.
The demand for securing homegrown AI
Companies are waking up to the fact that their biggest AI security risk might not be a sophisticated external attack, but an internal tool built over a weekend. These tools can access sensitive databases, connect to cloud services, and process confidential information — all without oversight. Pluto Security's funding is a bet that businesses will pay to regain control.
That demand isn't just theoretical. As AI coding assistants and no-code platforms proliferate, the number of employee-built tools is set to explode. Each one represents a potential entry point for attackers or a source of accidental data leakage. Pluto's solution aims to give security teams visibility and control over these tools without stifling innovation.
With $42 million in fresh capital, Pluto Security will look to accelerate its roadmap and capture a slice of the growing market for AI security. The company hasn't announced specific product milestones or customers, but the funding gives it runway to build and sell. For businesses, the message is clear: employee-built AI is here to stay, and it needs to be secured.
Pluto's next steps will be watched closely by both investors and security leaders. If it can prove that securing employee AI is both possible and profitable, it could define a new category. For now, the company has the resources to try — and a clear mandate from its backers.
