Modelyo announced on Thursday, October 22, 2026, that it has raised approximately $17 million, primarily from US investors, to accelerate the development of its Sovereign Confidential Cloud platform and expand its international operations.
Modelyo's technology enables organizations to use cloud infrastructure, managed services and AI agents while keeping their data encrypted, including during processing, without sharing encryption keys with the cloud provider. The company operates in Israel and international markets and will use the funding to expand its development and commercial operations.
The company aims to address a central challenge for governments, banks, defense companies, healthcare organizations and large enterprises: using the vast computing resources of the cloud and advanced AI systems while retaining control over their data, intellectual property and encryption keys.
With even the largest technology platforms vulnerable to breaches and cyberattacks, and organizations facing risks from their reliance on external infrastructure providers, Modelyo offers a new approach to cloud security based on cryptographic verification. Its technology enables organizations to verify that their data is protected, including during processing, rather than relying solely on assurances from their providers.
The technology combines confidential computing, hardware-based encryption, continuous verification of the computing environment and a zero trust architecture. It allows organizations to run advanced cloud services on third-party infrastructure while retaining control of their encryption keys, without requiring the infrastructure provider to access the contents of their data.
The funding was led by US-based OlivTree, with participation from Seth Merrin, David Phelps and other investors. The proceeds will be used to accelerate research and development of the confidential cloud platform and expand the company's international go-to-market activities.
The company plans to expand its encrypted managed services, enhance support for AI systems and autonomous agents, extend support for GPU infrastructure and make the platform easier to use.
"The world is moving at a pace we have never seen before. 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," said Benny Meir, co-founder and CEO of Modelyo. "But as technology advances, security must advance with it. We cannot build tomorrow's world on yesterday's approaches to security. We founded Modelyo with the understanding that the world cannot afford to choose between innovation and security. There is no reason a company should have to surrender its secrets, its intellectual property or control over its systems simply to benefit from the power of cloud computing and AI."
Meir added: "We want to change the relationship between organizations and their technology providers. Instead of asking customers to trust that their data is protected, we give them the tools to prove it cryptographically, even while the data is being processed, even when it is in someone else's cloud, and even when AI systems are working with it."
More Than 20 Patents and Patent Applications From Cloud Services to Robotics
Modelyo's technology is based on a portfolio of more than 20 patents and patent applications supporting the development of confidential computing infrastructure and the delivery of encrypted managed services.
The platform is designed to support the secure operation of databases, storage and memory services, communications systems, email and video services, AI models and advanced processing environments.
One of Modelyo's key advantages is its ability to provide managed services in a confidential computing environment without requiring customers to build and maintain all the security layers themselves. Modelyo aims to make these complex technologies available as cloud services that can be deployed in minutes with a few simple steps.
The company's vision extends beyond enterprise computing. As AI becomes increasingly integrated into the physical world, including robots, autonomous vehicles, industrial systems and smart infrastructure, the need to protect not only data but also the computing environments in which decisions are made will grow.
About Modelyo
Modelyo was founded following the October 7 attacks by three founders with experience in defense systems, encryption technologies and advanced computing infrastructure. The company develops a Sovereign Confidential Cloud platform to protect data, managed services, AI systems and autonomous agents. The platform combines confidential computing, continuous cryptographic verification, separation of trust layers and customer control over encryption keys. It is designed to enable organizations with stringent security and sovereignty requirements to use advanced cloud infrastructure securely.
The founders identified a growing need among defense organizations, governments and large enterprises to access the public cloud's extensive computing resources without compromising data security, sovereignty or control over encryption keys.
Benny Meir, co-founder and CEO, is a reserve lieutenant colonel with more than two decades of experience in special operations, the establishment of operational units and the development of technological and operational capabilities. In recent years, he has also been involved in the technological and operational campaign on the Lebanon front.
Co-founder Dr. Itzhak Aviv has extensive experience in defense communications, computing and encryption systems, including work within MATZOV and the IDF's communications and computing directorate. His expertise includes communications infrastructure and secure systems.
Co-founder Dr. Michael Kiperberg is an expert in secure virtualization systems, computing infrastructure and encryption, with extensive research and technology experience.
Artem Barger leads the company's research and development. He has extensive experience in virtualization technologies, Linux and IBM systems and has helped develop key technologies in the field. His research has received more than 7,000 academic citations, according to Google Scholar.
The team's operational experience, understanding of national security requirements and expertise in computing infrastructure shape Modelyo's development approach: building technology that will enable even the world's most sensitive organizations to use advanced cloud and AI services.
Modelyo operates in Israel, the United States, Europe, South Korea, India, the United Arab Emirates and other markets. Its focus includes governments, defense organizations, banks and financial institutions, pharmaceutical and healthcare companies, critical infrastructure operators and large enterprises seeking to adopt cloud and AI infrastructure while maintaining full control over their data and intellectual property.
The company collaborates with NVIDIA, Intel and Google on technology initiatives aimed at advancing the use of confidential computing on advanced hardware and cloud infrastructure and enabling organizations to run resource-intensive AI applications in secure environments.
