Security start-up CalypsoAI raises $23m in funding round

Artificial intelligence security start-up CalypsoAI has raised $23 million (€21 million) in funding to drive plans to let companies use so-called generative artificial intelligence securely.

The Series A-1 round was led by Paladin Capital Group, while existing investors such as Lockheed Martin Ventures and new investors Hakluyt Capital and Expeditions Fund also supported the round, the company said. Early stage investors, including entrepreneur Auren Hoffman, 23andMe cofounder Anne Wojcicki and former YouTube chief Susan Wojcicki, also participated.

CalypsoAI, which was founded by Neil Serebryany in 2018, gives companies the chance to use AI technology including large language models (LLMs) – or generative AI – such as those used by OpenAI and Google, while ensuring data remains secure.

The new investment will help the company to support product development, enabling even more enterprises to use generative AI responsibly. It will also be used to hire more people and support go-to-market investments.

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The round brings to $38.2 million the total funding raised since CalypsoAI was founded.

“Many organisations may think banning the use of LLMs or setting up written guidelines are the right approaches to mitigating risk. Not only are these the wrong approaches, but it also sets them up to become digital laggards as their competitors successfully deploy the technology to scale innovation,” said Mr Serebryany, chief executive of CalypsoAI.

“By adopting CalypsoAI’s solutions, every enterprise or government organisation should be able to enable the benefits AI solutions deliver while having confidence that they are trusted, resilient and secure. With support from some of the top investors and a drive to put LLMs in every worker’s hands, CalypsoAI is bringing the AI and cybersecurity markets together in a way that’s never been done before.”

The AI sector is set for significant growth in the coming years, with the global generative AI market expected to reach $42.6 billion in 2023, according to research from Pitchbook, as enterprises embrace the technology. However, that can also create new security risks.

CalypsoAI opened a centre of excellence in Dublin earlier this month, seeking to capitalise on the growth in demand for its technology.

The Dublin office provides the company with a location to continue to develop its Moderator product, which allows businesses to use generative AI but also ensures that intellectual property does not leave the business, thwarts attempts to bypass system safeguards and blocks malicious code from entering a company’s system. Among its customers are banks, insurance firms and education companies.

CalypsoAI employs about 20 people in Ireland and the UK with plans to grow to about 50 people over the next two years.