NEW YORK – In an era where digital threats dominate headlines, a San Mateo-based technology firm is making a powerful case that the next frontier of artificial intelligence lies not in the cloud, but in the physical world. Verkada, a company that develops AI-powered security systems for buildings and public spaces, has secured a significant new investment led by CapitalG, the independent growth fund of Google-parent Alphabet Inc. The deal catapults Verkada’s valuation to a staggering $5.8 billion, a clear signal that some of Silicon Valley’s sharpest minds believe the future of safety is intelligent, connected, and constantly watching.

The investment underscores a profound shift in the physical security market, a sector long dominated by analog systems, siloed equipment, and reactive monitoring. Verkada’s proposition is to replace this aging infrastructure with a seamlessly integrated, cloud-native platform. “We make technology, cloud-first, AI-native, that protects spaces, physical buildings,” said Kameron Rezai, Verkada’s Chief Financial Officer, in a recent interview on NYSE Floor Talk. He explained that the company’s founders saw an opportunity to bring the simplicity of a smart home doorbell to the complex needs of large-scale commercial enterprises and municipalities.

This vision has resonated powerfully with investors and customers alike. The new funding round increased the company’s valuation by nearly $1.3 billion from a financing announced earlier in the year. With a customer base now exceeding 30,000 organizations—including nearly a hundred of the Fortune 500—and almost two million devices deployed globally, Verkada is moving from a disruptive startup to an industry heavyweight. The backing from CapitalG, known for its strategic investments in high-growth companies like Stripe and Databricks, is more than just a capital injection; it’s a formidable endorsement of Verkada’s approach to harnessing AI for real-world applications.

From Reactive Alarms to Proactive Intelligence

At the heart of Verkada’s platform is a sophisticated AI engine designed to transform security from a passive to an active function. The company’s integrated suite of products—spanning video cameras, door-based access control, environmental sensors, and alarm systems—feeds a constant stream of data to its cloud platform. This is where the AI gets to work, processing what Mr. Rezai says is an astounding 20 million images per second across its clients’ secure locations, turning raw footage and sensor data into actionable intelligence.

Mr. Rezai outlined three core ways Verkada’s AI enhances security. The first is deterrence. The system can identify an individual in a restricted area, analyze their actions—such as loitering or fence-jumping—and trigger an automated, highly specific audio response. “It can generate voice responses that say, ‘Hey, you in the black hoodie, you’re trespassing on the property. We’re going to notify the police if you don’t leave,’” he explained. This capability aims to stop incidents before they escalate by making potential intruders aware they are being monitored in real-time by an intelligent system.

The second use case is faster, more accurate response. Traditional security systems often overwhelm human operators with a flood of alerts, many of them false alarms. Verkada’s AI is trained to differentiate between benign activity and genuinely threatening behavior. For example, it can flag a person lingering outside a retail store or at an ATM vestibule for an unusual length of time, sending a targeted alert to security personnel who can then investigate. This filtering allows human guards to focus their attention where it is most needed, making them more efficient and effective.

Accelerating Investigations and Securing the Unsecurable

The third and perhaps most impactful application is in post-incident investigation. When a crime occurs, sifting through weeks of footage from dozens of cameras can be a painstaking process for law enforcement and corporate security teams. According to a report from TechCrunch, Verkada’s AI-powered search tools allow users to instantly scan across hundreds of devices and vast timelines to find a specific individual or event. This dramatically reduces investigation time from days or weeks to mere minutes, providing critical evidence when it is most valuable.

The technology is proving particularly effective in environments that are notoriously difficult to secure. Mr. Rezai highlighted the case of Terawatt, a company that operates large, outdoor electric vehicle charging depots for clients like Waymo. Securing a vast, fenced-in area with traditional methods is impractical. “How do you protect that?” Mr. Rezai posed. “The best way to protect that is using AI, video, and other systems that are able to detect what’s going on there.” The system can identify unauthorized presence and notify the property owner, who can then determine if the person is a customer or a potential threat.

This ability to provide robust security for non-traditional spaces is a key driver of Verkada’s growth. The company’s integrated platform offers a holistic view of a property’s security posture, a stark contrast to the fragmented systems of the past. As businesses and public entities grapple with protecting increasingly complex physical assets, this all-in-one, intelligent solution presents a compelling value proposition.

A World on Edge Creates a Fertile Market

Verkada’s rapid ascent is taking place against a backdrop of rising public concern over safety. “I oftentimes ask people, do you think the world is getting safer or less safe? And unfortunately, I think most people answer that in the same way, which is less safe,” Mr. Rezai noted. From organized retail crime and corporate espionage to ensuring school safety, the demand for more effective security solutions is surging. High-profile security failures further underscore the market need.

Mr. Rezai pointed to a recent incident where activists staged a protest inside Paris’s Louvre museum, highlighting how easily security can be breached. He suggested such events are often “emblematic of what we’ve seen in other security incidents where there were insufficient cameras or the cameras were offline.” According to a report from ARTnews on a similar protest, securing sprawling public venues with priceless assets remains a monumental challenge. Verkada argues that its cloud-connected technology, which ensures devices are online and provides remote visibility, is the answer to these legacy system failings.

The company is positioning itself not just as a technology vendor, but as a crucial partner in protecting people and places. “We live in a world now where you can check in on your dog or cat at home, but most businesses can’t even check in on the multi-million dollar paintings that are sitting in that hallway,” Mr. Rezai said. By providing that constant, intelligent oversight, Verkada is tapping into a deep-seated and growing demand for security and peace of mind.

Navigating the Shadows of Past Breaches and Privacy Concerns

Despite its impressive growth and technological prowess, Verkada’s journey has not been without significant challenges. The company is still working to rebuild trust following a major security breach in 2021. As detailed by Bloomberg, a group of hackers gained access to the live feeds of approximately 150,000 cameras inside sensitive locations, including Tesla factories, Cloudflare offices, hospitals, and jails. The incident was a stark reminder that centralizing vast amounts of sensitive data in the cloud creates a high-value target for malicious actors.

The breach forced Verkada to undertake a comprehensive overhaul of its internal security protocols and access controls. While the company has since fortified its systems, the event remains a crucial part of its story, highlighting the immense responsibility that comes with being the custodian of its clients’ most sensitive real-world data. For potential customers, particularly in enterprise and government sectors, weighing the benefits of Verkada’s powerful AI against the potential risks of a cloud-based system remains a critical part of the due diligence process.

Beyond cybersecurity, the very nature of Verkada’s technology places it at the center of the ongoing societal debate over surveillance and privacy. The ability to track individuals across a network of cameras and analyze behavior using AI raises profound ethical questions. As its technology becomes more powerful and its presence more ubiquitous, Verkada will increasingly face scrutiny from privacy advocates and regulators, forcing it to navigate a complex ethical landscape while pursuing its mission to make the world safer.

Augmenting Humans in the Future of Security

Looking ahead, Mr. Rezai is clear that Verkada’s goal is not to replace human security professionals but to empower them. He envisions a future where AI acts as a force multiplier, handling the monotonous task of monitoring endless video feeds so that humans can focus on strategic decision-making and on-the-ground response. “A person staring at a hundred screens…is probably not actually going to notice the one screen where that person might have cracked open a window,” he argued. “We’re able to with AI technology search through hundreds and thousands of hours of information and be able to identify problems.”

This vision of augmented security is where the company sees its greatest potential. By making security personnel smarter and more efficient, Verkada aims to fundamentally improve safety outcomes. The fresh capital from CapitalG and other investors will be funneled into research and development to expand these AI capabilities, making the system even more intuitive, proactive, and intelligent.

Verkada stands at a pivotal moment, armed with a multi-billion-dollar valuation and the backing of one of technology’s most influential investors. It is leading a transformation in an industry ripe for disruption, promising a safer world through the lens of artificial intelligence. The challenge ahead will be to deliver on that promise while maintaining the highest standards of security and privacy, ensuring its all-seeing eye is used to protect, not to intrude.