AI Security Startup Alice Raises $140M Amid Surging Enterprise AI Threats

Key Takeaways

• AI security firm Alice (formerly ActiveFence) has secured $140 million in a new funding round.
• The investment, led by Apax Digital Funds, brings Alice’s total funding to $280 million, valuing the company at up to $1 billion.
• This capital injection will fuel expansion of Alice’s proprietary AI attack dataset, enhance its model-testing capabilities, and scale its market reach.
• The funding underscores growing enterprise demand for specialized AI security solutions to combat rising threats against large language models and agentic AI.

AI Security Firm Alice Secures $140 Million Amid Escalating AI Threats

Alice, an emerging leader in AI trust, safety, and security, has successfully closed a $140 million funding round. This substantial investment was spearheaded by Apax Digital Funds, with significant new participation from SentinelOne, Samsung Electronics, Maj Invest, MoreTech, and Phoenix Insurance. Existing investors including Resolute Ventures, Grove Ventures, CRV, Highland Europe, Vintage Investment Partners, Norwest, NFX, and Claltech also contributed to the round.

This latest infusion of capital elevates Alice’s total funding to an impressive $280 million. Reports from Bloomberg suggest the Israeli-founded company is now valued at nearly $1 billion, while Globes indicated an $800 million valuation for the round. As part of the agreement, Apax Digital will gain a seat on Alice’s board of directors.

Responding to a New Threat Landscape

The timing of this funding round is particularly salient, coinciding with what Bloomberg describes as a “spate of high-profile hacks from AI systems.” This trend highlights a critical shift in adversarial tactics, with malicious actors increasingly targeting large language models (LLMs) and agentic AI deployments, rather than traditional network perimeters. Alice’s fundamental premise addresses this challenge: the sheer unpredictability of AI system vulnerabilities means defenders cannot rely solely on known attack patterns.

Since its inception in 2018 as ActiveFence, the company has meticulously documented how bad actors exploit major digital platforms. This extensive, proprietary dataset of real-world attacks, internally dubbed “Rabbit Hole,” forms the bedrock of Alice’s platform. It enables the company to proactively predict and prevent adversarial behavior against AI models, aligning with the growing enterprise demand for dedicated AI security software.

Alice’s Platform and Strategic Growth

The “Rabbit Hole” dataset is central to Alice’s comprehensive platform, which offers end-to-end capabilities for testing, defending, and monitoring AI models throughout their entire lifecycle. This includes pre-launch red-teaming exercises, the implementation of runtime guardrails, and continuous production testing.

According to Alice’s official funding announcement, the newly acquired capital will be strategically deployed to expand the team responsible for maintaining and enhancing the “Rabbit Hole” dataset. Furthermore, the investment will deepen the company’s model-testing technologies and accelerate its go-to-market initiatives, targeting both foundational model laboratories and enterprises building AI-powered solutions.

Alice’s business performance reflects the escalating enterprise interest in AI security. CEO Noam Schwartz stated that the company is approaching $100 million in annual recurring revenue (ARR), with its AI-focused segment experiencing over 500% growth in the past two years. Alice currently partners with eight of the top ten leading AI model labs and reports protecting more than three billion individuals online. Its customer roster reportedly includes prominent names such as Anthropic, Google, and Nvidia.

Pivoting to AI-Native Security

Underpinning this rapid expansion is one of the industry’s largest dedicated AI security research teams, comprising over 150 researchers. These experts are focused on understanding how AI systems can be manipulated, jailbroken, or otherwise compromised, and developing preventative measures before deployment.

The company rebranded from ActiveFence to Alice in January 2026. This strategic pivot signaled a shift from its original focus on online content moderation and platform trust and safety towards directly securing AI models against emerging exploitation techniques such as prompt injection, jailbreaks, and adversarial inputs. This reorientation underscores the critical need for formal AI security frameworks in modern enterprises.

Alice’s successful funding round positions it among a growing number of cybersecurity vendors innovating to build specialized defenses for AI infrastructure. This sector has expanded dramatically as enterprises integrate generative AI and autonomous agents into production environments. With both frontier AI labs and Fortune 500 companies increasingly viewing AI-specific security as a fundamental requirement rather than an afterthought, Alice’s latest investment round signals strong investor confidence in this rapidly evolving and critical cybersecurity frontier, reinforcing strategic priorities for AI security planning across organizations.

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