Venice AI, an artificial intelligence platform that promises users more privacy and fewer restrictions than mainstream AI chatbots, has raised $65 million in fresh funding, pushing its valuation to $1 billion and giving the company unicorn status.
The funding round was led by Dragonfly, with backing from Coinbase Ventures, North Island Ventures, Archetype, Liquid2 Ventures, Morgan Creek and several other investors, founder Erik Voorhees announced.
The investment marks Venice’s first outside funding since launching just over two years ago.
Unlike many AI platforms that develop their own large language models, Venice acts as a gateway to multiple leading AI models, both open-source and commercial, through a single interface.
Venice bets on AI without sacrificing user privacy
The company says its focus is on giving users access to powerful AI tools without requiring them to hand over large amounts of personal data.
In announcing the funding, the firm said Venice is working to build “the platform dedicated to private and unrestricted machine intelligence.”
Privacy has been central to the company’s pitch from the beginning. Venice argues that many AI services rely on extensive user tracking and centralized data collection. Instead, it has positioned itself as an alternative for people who want to use AI without feeling that every interaction is being stored or analyzed.
The strategy appears to be gaining traction. Venice reached 3 million users in April and became profitable during the first quarter of this year, a notable milestone in an AI industry where many startups are still spending heavily to grow their businesses.
He contrasted Venice’s progress with larger AI companies that continue burning significant amounts of capital while relying on extensive data collection to improve their products.
The new funding will help the company expand its platform, improve its infrastructure and integrate more AI models into its service. Venice also plans to grow its developer tools, making it easier for businesses to build applications using its privacy-focused AI platform.
The company says demand for AI services that give users greater control over their data continues to grow as concerns around digital privacy become more widespread.
Venice also takes a different view of what “AI safety” means
While many AI companies focus on preventing harmful model outputs and managing long-term AI risks, Venice says its priority is protecting user privacy, limiting data retention and preserving freedom of expression.
According to the company, those principles guide both its product design and long-term strategy.
The funding reflects a broader trend across the AI industry, where investors are beginning to back companies offering specialized alternatives instead of competing head-on with the largest AI developers.
Rather than trying to build the biggest model, Venice is betting that there is a growing market for AI platforms that prioritize user control and transparency.
With fresh funding in hand and a billion-dollar valuation, the company now plans to scale its infrastructure, expand its user base and continue building what it sees as a more private way to interact with artificial intelligence.
