AI Security Startup Alice Raises $140 Million as Enterprise AI Threats Surge

Alice, the AI trust, safety, and security company formerly known as ActiveFence, has closed a $140 million funding round led by Apax Digital Funds, with new backing from SentinelOne, Samsung Electronics, Maj Invest, MoreTech, and Phoenix Insurance, alongside existing investors Resolute Ventures, Grove Ventures, CRV, Highland Europe, Vintage Investment Partners, Norwest, NFX, and Claltech.

The round pushes Alice’s total funding to $280 million and, according to Bloomberg, values the Israeli-founded company at nearly $1 billion, while Globes reported the round closed at an $800 million valuation. Apax Digital will take a seat on Alice’s board as part of the deal.

Alice Raises $140 Million for AI Security

The raise arrives amid what Bloomberg describes as a “spate of high-profile hacks from AI systems,” underscoring how adversaries are increasingly targeting large language models and agentic AI deployments rather than traditional network perimeters.

Alice’s core pitch is that there are effectively infinite ways to break an AI system, and defenders cannot guard against attack patterns they have never encountered.

Since its founding in 2018 as ActiveFence, the company has tracked how malicious actors exploit major digital platforms, compiling a proprietary dataset of real-world attacks that it now uses to predict and prevent adversarial behavior against AI models, aligning with broader enterprise adoption of dedicated AI security software.

That dataset, internally known as “Rabbit Hole,” sits at the center of Alice’s platform, which tests, defends, and monitors AI models throughout their lifecycle, from pre-launch red-teaming to runtime guardrails and ongoing production testing.

As highlighted in Alice’s funding announcement, the company says it will use the new capital to expand the team maintaining that dataset, deepen its model-testing technology, and scale go-to-market efforts targeting foundation model labs and enterprises building on AI.

Alice’s business metrics reflect surging enterprise appetite for AI security. The company is approaching $100 million in annual recurring revenue, with its AI-focused business growing more than 500% over the past two years, according to CEO Noam Schwartz.

Alice now says it works with eight of the ten leading AI model labs and protects more than three billion people online, and reported customers reportedly include Anthropic, Google, and Nvidia.

Funding & Growth Metric	Detail	Strategic Impact
Funding Round	$140 Million (Total funding: $280 Million)	Led by Apax Digital Funds with SentinelOne, Samsung, and institutional backers
Valuation Estimate	$800 Million to Nearly $1 Billion	Reflects soaring market demand for specialized AI trust and defense tools
Revenue & Traction	Approaching $100M ARR (500%+ 2-year growth)	Strong commercial adoption across 8 of top 10 foundation model labs
Core Threat Asset	“Rabbit Hole” Real-World Attack Dataset	Real-time adversarial intelligence for pre-launch and runtime guardrails
Enterprise Coverage	Securing 3B+ online users across major ecosystems	Deployed across leading tech environments including Anthropic, Google, and Nvidia

Underpinning that growth is one of the industry’s largest dedicated AI security research operations, where more than 150 researchers study how AI systems can be manipulated, jailbroken, or made to fail, and how such failures can be prevented before deployment.

The company rebranded from ActiveFence to Alice in January 2026, signaling a strategic pivot from its original focus on online content moderation and platform trust and safety toward securing AI models directly against prompt injection, jailbreaks, adversarial inputs, and other emerging exploitation techniques, emphasizing the necessity of formal AI security frameworks.

The financing round positions Alice among a growing cohort of cybersecurity vendors racing to build dedicated defenses for AI infrastructure, a category that has expanded rapidly as enterprises move generative AI and autonomous agents into production.

With frontier labs and Fortune 500 companies alike now treating AI-specific security as a baseline requirement rather than an afterthought, Alice’s latest raise signals investor confidence that this niche is becoming one of cybersecurity’s fastest-growing frontiers, reinforcing strategic priorities when planning AI security across modern organizations.

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