Privacy-focused artificial intelligence platform Venice AI has achieved unicorn status after raising $65 million in a Series A funding round that valued the company at $1 billion. The funding was led by Dragonfly, with participation from Coinbase Ventures, F-Prime, North Island Ventures and Morgan Creek, marking Venice AI’s first external capital raise since its launch in 2024. The investment comes at a time when concerns over AI privacy are growing, following restrictions on access to some AI models and legal challenges involving the handling of user data. Venice AI says the fresh capital will help expand its infrastructure, strengthen privacy-focused AI services and accelerate global growth.
Venice AI was founded by crypto entrepreneur Erik Voorhees and presents itself as an alternative to mainstream AI platforms by giving users more control over their privacy. The company says it has about 3.5 million users and offers access to over 200 AI models through a system that limits how much personal information is shared with AI providers.
Venice AI is different from regular AI platforms because it puts a proxy layer between users and the AI models. For services from companies like OpenAI, Anthropic, xAI, and Google, the platform hides users’ IP addresses, account details, and session data. Some models on Venice AI offer even stronger privacy protections.
Voorhees said the new funding will primarily be used to expand the company’s own data centre infrastructure. Instead of relying heavily on rented computing resources, Venice AI plans to own more of the graphics processing units (GPUs) that power its platform. The company believes this will reduce operating costs while improving performance and reliability.
The rest of the funds will help Venice AI attract new customers, expand into new markets, hire talent, and look for strategic acquisitions. Voorhees also said the company wants to protect user privacy and freedom as it develops AI technologies, calling the investment support for basic rights in how people interact with AI.
The funding round comes as concerns over AI privacy continue to attract public attention. In recent months, several developments have fuelled the debate over how AI companies collect, store and use user data. Restrictions on access to advanced AI models in certain regions and legal disputes involving data-sharing practices have prompted many users to seek platforms offering stronger privacy protections.
Dragonfly Managing Partner Haseeb Qureshi said control over AI systems will become one of the defining issues of the coming decade. He argued that companies operating AI platforms have unprecedented access to users’ personal thoughts and conversations, making privacy an increasingly important consideration.
The growing interest in privacy-preserving AI has also reached the blockchain industry. Earlier this year, developers within the Ethereum ecosystem proposed using technologies such as zero-knowledge proofs to make interactions with large language models more private and secure.
As artificial intelligence becomes more deeply integrated into everyday life, companies that combine advanced AI capabilities with stronger privacy protections may find themselves in a favourable position. Venice AI’s latest funding round suggests that investors see significant potential in platforms that prioritise user control and data privacy alongside technological innovation.
Venice raises a $65M Series A at a $1B valuation https://t.co/9njvvz0L0D
— Venice (@AskVenice) July 1, 2026
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