The increasing frequency and cost of cyberattacks pose significant challenges for organizations worldwide. In the first quarter of 2024, companies faced an average of 1,300 attacks per week. By 2028, losses from cybercrime are projected to surpass $13 billion, according to Statista.
While software solutions are widely used to counter cyber threats, hardware-based defenses are gaining traction. Axiado, a startup founded in 2017, has developed security chips designed to protect devices such as data centers and 5G base stations. These chips, combined with accompanying software, offer an integrated approach to safeguarding digital infrastructure.
Axiado’s technology addresses vulnerabilities in the boot sequence of machines—a critical process that initiates system startup. According to CEO Gopi Sirineni, some machines fail to verify whether the boot sequence has been tampered with, leaving them open to attack. Axiado’s chips authenticate updates and continuously monitor the boot process to ensure its integrity, providing robust protection against such threats.
Beyond boot-level security, Axiado’s chips also safeguard software, applications, and workloads during runtime. This functionality is comparable to technologies like Microsoft’s Pluton, Google’s Titan, and Apple’s T2.
The chips employ root-of-trust technology, which uses cryptographic methods to prevent hardware tampering. They also power Axiado’s cybersecurity monitoring platform, which detects potential threats by analyzing data patterns. Artificial intelligence (AI) is a key component of this platform, enabling it to learn system behavior and compare it to known malicious patterns, as provided by customers.
“We complement existing software-based ransomware solutions by acting as the last line of defense,” Sirineni explained, emphasizing the chip’s role in enhancing overall cybersecurity.
While custom silicon like Axiado’s chips can bolster security, it is not without limitations. Past incidents, such as the discovery of an "unfixable" flaw in Apple’s T2 chip in 2020, highlight the potential vulnerabilities in even the most advanced hardware solutions. Additionally, supply chain issues and lapses in best practices have led to secure boot failures in certain cases.
Axiado’s chips have not yet been compromised, but their limited deployment may be a factor. Despite this, the company is expanding its use cases. Recently, it introduced a system for data centers that dynamically adjusts cooling to optimize costs and environmental impact. This system, driven by Axiado’s chip, aligns with broader trends in sustainable technology and infrastructure management.
Axiado has secured significant financial backing, recently raising $60 million in a Series C funding round led by Maverick Silicon, with contributions from Samsung Catalyst Fund, Atreides Management, and Crosslink Capital. This brings the company’s total funding to $140 million.
The new investment will support Axiado’s efforts to scale production and generate revenue by 2025. The company plans to grow its 100-person workforce across its offices in San Jose, India, and Taiwan.
“Our product has been in the sampling phase for a year,” Sirineni noted. “This funding will help us transition to mass production and bring our solutions to market.”
As Axiado continues to innovate in cybersecurity and data center management, its unique combination of hardware and software positions it as a notable player in the industry’s ongoing fight against cyber threats.
