Israeli Tech Firm MODELYO Raises $17 Million for Secure Cloud Platform

MODELYO, an Israeli technology company founded after the October 7th events, announced on Thursday it has secured approximately $17 million in funding, primarily from American investors. The round was led by the US-based firm OlivTree, with participation from investors Seth Marin and David Phelps.

The company, established by three founders with backgrounds in security, encryption, and computing, has developed a confidential cloud platform designed to address the challenge of using advanced AI and cloud services without compromising sensitive data. MODELYO's technology allows organizations to operate cloud services and AI systems while keeping data encrypted, even during processing, and without needing to share encryption keys with the cloud provider.

The solution is targeted at governments, security agencies, banks, healthcare organizations, and large corporations handling sensitive information and intellectual property. The newly raised capital will be used to accelerate the development of its Sovereign Confidential Cloud platform and expand its international commercial operations. Plans include enhancing encrypted managed services, improving support for AI systems and autonomous agents, and expanding the use of GPU infrastructure for advanced AI.

MODELYO's platform integrates confidential computing, hardware-based encryption, and continuous cryptographic verification of the processing environment. According to the company, this enables clients to utilize external cloud infrastructure while maintaining control over encryption keys and data access. The technology is supported by over 20 patents and patent applications.

Beni Meir, co-founder and CEO of MODELYO, emphasized the growing need for AI security as these systems move from content generation to decision-making and system operation. "We cannot build tomorrow's world on yesterday's security concepts," Meir stated, highlighting that organizations should not have to choose between innovation and security. He added that the company aims to empower clients with cryptographic proof of data protection, even when processed in third-party clouds or by AI systems.

The company was founded by Beni Meir, a retired Lieutenant Colonel with extensive experience in special operations and technological development; Dr. Itzik Aviv, with expertise in security computing and encryption systems; and Dr. Michael Kupferberg, specializing in secure virtualization and encryption. Artyom Berger leads the R&D efforts. MODELYO currently operates in Israel, the US, Europe, South Korea, India, and the UAE, and collaborates with NVIDIA, Intel, and Google to advance confidential computing.