Modelyo Raises $17 Million to Fund Sovereign Confidential Cloud Development
Modelyo announced on Thursday, October 22, 2026, that it has raised approximately $17 million in a funding round led by U.S.-based OlivTree, with participation from Seth Merrin, David Phelps, and other investors. The capital injection will accelerate research and development of the company’s Sovereign Confidential Cloud platform and expand its international commercial operations.
Founded in 2024 following the October 7 attacks by three founders with experience in defense systems, encryption technologies and advanced computing infrastructure, Modelyo employs 30 people and previously operated solely on funding from its founders. The platform addresses a central challenge for defense agencies, governments, banks, healthcare organizations, and large enterprises: using public cloud computing and artificial intelligence systems while retaining control over sensitive data, intellectual property, and encryption keys.
Cryptographic Verification Replaces Blind Trust in Cloud Providers
Modelyo’s technology combines confidential computing, hardware-based encryption, continuous verification of computing environments, and a zero-trust architecture. This framework protects data while it is stored, transmitted, and actively processed.
Rather than relying on security assurances from external infrastructure providers, organizations using Modelyo can cryptographically verify that their data remains protected. The platform allows customers to run services on third-party cloud infrastructure without giving providers access to the contents of their data or encryption keys. According to the company, its technology is supported by a portfolio of more than 20 patents and patent applications covering confidential computing infrastructure and encrypted managed services.
Modelyo Uses $17 Million to Expand AI Services
The newly secured $17 million will enable Modelyo to expand its encrypted managed services, enhance support for AI systems and autonomous agents, extend compatibility with GPU infrastructure, and simplify platform deployment. The system is designed to deploy in minutes, making complex security layers accessible without requiring customers to build and maintain them independently.
“The world is moving at a pace we have never seen before,” Benny Meir, co-founder and CEO of Modelyo, said in a statement. “AI no longer just generates content. It is beginning to make decisions and operate systems, and will soon be part of almost every aspect of our lives, from banking to the cars we drive.” Meir added that the platform gives organizations the tools to prove data security cryptographically, even when third-party cloud providers and AI systems are actively working with the information.
Leadership Experience Shapes Security Approach
Modelyo’s founding team brings backgrounds in national security, encryption, and virtualization to commercial cloud security.
Artem Barger leads research and development, backed by virtualization experience and over 7,000 academic citations recorded on Google Scholar. The company currently operates in Israel, the United States, Europe, South Korea, India, and the United Arab Emirates, collaborating with industry leaders such as NVIDIA, Intel, and Google.