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Startup Shields AI Data with Encryption Breakthrough

San Francisco-based Confident Security has emerged from stealth with $4.2 million in seed funding to address one of AI's biggest adoption barriers: data privacy. The company's CONFSEC technology, inspired by Apple's Private Cloud Compute architecture, creates an encrypted wrapper around AI models that prevents sensitive data from being stored, viewed, or used for training by model providers or third parties. This innovation could accelerate AI adoption in highly regulated sectors like healthcare, finance, and legal services where privacy concerns have limited implementation.
Startup Shields AI Data with Encryption Breakthrough

Confident Security, founded by two-time entrepreneur Jonathan Mortensen, aims to become "the Signal for AI" by solving the fundamental privacy-versus-utility dilemma that has hampered enterprise AI adoption.

The company's flagship product, CONFSEC, is an enterprise-grade implementation of Apple's Private Cloud Compute (PCC) architecture that has been thoroughly tested and externally audited. It works by anonymizing data through encryption and routing it through services like Cloudflare or Fastly, ensuring that servers never see the original source or content.

"Businesses and consumers are feeding AI everything from medical information to a company's roadmap and trade secrets," said Mortensen, who previously sold companies to BlueVoyant and Databricks. "AI is now table stakes, but it's come at the cost of privacy. This creates a fundamental tension in sectors like healthcare, finance, government, and legal – and any business that wants to protect its IP or customers."

The $4.2 million seed round was led by Decibel, with participation from South Park Commons, Ex Ante, and Swyx. Jess Leao, Partner at Decibel, noted that "privacy is now the critical barrier to AI adoption in enterprise."

Confident Security's approach could be particularly transformative for industries handling sensitive data. By 2025, privacy regulations have become increasingly stringent worldwide, with new laws taking effect across multiple jurisdictions. Organizations in regulated sectors have been caught between competitive pressure to adopt AI and compliance requirements to protect sensitive information.

The company is already in talks with banks, browsers, and search engines to integrate CONFSEC into their infrastructure stacks. With its promise of provably private AI interactions, Confident Security is positioning itself as an essential intermediary between AI providers and enterprises seeking to leverage AI while maintaining data sovereignty.

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