How does Venice AI protect user privacy?

All user input is encrypted and unencrypted client-side, then routed through an external proxy before processing, with no data stored on Venice's systems. The company also provides end-to-end encryption on some models for paying subscribers.

What makes Venice AI profitable already?

The company has annualized run-rate revenues of over $70 million（約110億円） while serving 3 million active users and processing 1.7 million API calls per day on average. Voorhees credited growth partly to improving feature parity with ChatGPT and to the performance of its crypto tokens.

Who invested in Venice AI's Series A?

The $65 million（約100億円） round was led by Dragonfly, a crypto-focused venture firm, with participation from Coinbase Ventures, North Island Ventures, and others.

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Venice AI raises $65M at $1B valuation on privacy-first platform

TechCrunch AI16h ago5 min read

Key takeaway

Venice AI, a privacy-focused AI platform that lets users access over 200 models without storing their data, has raised $65 million（約100億円） at a $1 billion（約1600億円） valuation. The startup is already profitable with over $70 million（約110億円） in annualized revenue and serves 3 million active users, reflecting growing demand for AI tools that preserve user privacy and autonomy rather than imposing platform-wide restrictions.

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3 Key Points

What happened
Venice AI, a startup offering access to over 200 AI models with privacy protections, announced a $65 million（約100億円） Series A funding round at a $1 billion（約1600億円） valuation, led by crypto-focused venture firm Dragonfly. The company serves more than 3 million active users and processes an average of 1.7 million API calls per day, and is already profitable with annualized run-rate revenues of over $70 million（約110億円）.
Why it matters
Demand for AI tools is strong, but users increasingly want privacy guarantees and control over which models they use rather than being locked into a single company's restricted platform. Venice's model—encrypting user input, routing queries through an external proxy, and storing no data on its own systems—appeals to those concerns. CEO Erik Voorhees frames the service as a "neutral tool," drawing a parallel to Bitcoin's design philosophy.
What to watch
Venice plans to use the funding to buy GPUs and build its own data centers instead of leasing, aiming to increase gross margins. The company operates two crypto tokens (VVV and DIEM) that let users generate AI credits, though only about 8% of users currently pay with crypto.

FAQ

How does Venice AI protect user privacy?: All user input is encrypted and unencrypted client-side, then routed through an external proxy before processing, with no data stored on Venice's systems. The company also provides end-to-end encryption on some models for paying subscribers.
What makes Venice AI profitable already?: The company has annualized run-rate revenues of over $70 million（約110億円） while serving 3 million active users and processing 1.7 million API calls per day on average. Voorhees credited growth partly to improving feature parity with ChatGPT and to the performance of its crypto tokens.
Who invested in Venice AI's Series A?: The $65 million（約100億円） round was led by Dragonfly, a crypto-focused venture firm, with participation from Coinbase Ventures, North Island Ventures, and others.

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