AI Critics Caution About Potential Bubble as Teleskope Raises $25 Million to Address Cybersecurity Risks

A former engineer from Airbnb has raised $25 million in investment for Teleskope, an AI-powered cybersecurity startup focused on identifying and countering sophisticated cyber threats. Founded by Alex Chen, who previously led machine learning projects at Airbnb, Teleskope seeks to harness advanced artificial intelligence to meet the rising need for threat intelligence solutions. As the global threat intelligence market is expected to hit $22.97 billion by 2030—driven by increasing cybercrime and strategic partnerships—Teleskope’s launch highlights growing investor trust in AI’s potential within cybersecurity, according to a

.

Chen’s fundraising round drew support from leading technology investors such as Sequoia Capital and Andreessen Horowitz, underlining the industry’s appeal. The capital will be used to speed up Teleskope’s development of automated threat detection technologies and broaden its enterprise customer reach. “Cyberattacks are evolving faster than conventional security measures,” Chen explained. “Our AI systems process massive amounts of data instantly, detecting zero-day vulnerabilities and internal risks with unmatched precision.”

The rapid growth of AI security startups reflects larger shifts in the tech sector. Recent studies show that businesses are increasingly turning to AI-based threat detection, especially in cloud-first environments. For instance, cybersecurity company Inversion6 recently introduced a managed detection and response (MDR) solution that leverages AI for anomaly detection and minimizing false positives, underscoring the sector’s competitive dynamics, as detailed in an

. At the same time, the global genomics data analysis industry—another area heavily reliant on AI—is projected to expand at a 15.42% CAGR through 2034, demonstrating AI’s influence across multiple sectors, according to a .

Yet, the surge in AI security ventures has also drawn criticism. Notable figures such as Ray Dalio and

.ai’s Tom Siebel have cautioned about a potential “AI bubble,” pointing to inflated valuations and speculative funding. Siebel, in particular, questioned the possible IPO of OpenAI, arguing that while its innovations are significant, they are not irreplaceable, as highlighted in a . These discussions highlight the dangers of overestimating AI’s capabilities, even as demand for solutions like Teleskope’s continues to rise.

Teleskope’s emergence also comes as regulators increase oversight. Governments around the world are enforcing stricter cybersecurity standards, especially for essential infrastructure. In the Asia-Pacific region—which is anticipated to experience the fastest growth in threat intelligence—governments are ramping up efforts such as Singapore’s Cybersecurity Masterplan 2025 and India’s National Cyber Coordination Centre to address the surge in ransomware and phishing incidents, the report notes.

Despite obstacles, Teleskope is part of a new generation of AI startups seizing market opportunities. Seventeen-year-old investor Samik Sidhu recently credited his $72,000 earnings to early investments in AI companies like Nvidia and C3.ai, showing the sector’s appeal to both experienced and young investors, as described in a

. For now, Teleskope remains focused on enhancing its AI algorithms and scaling its business, aiming to lead in a rapidly expanding market.