Venice AI becomes a unicorn with $65M Series A as its privacy-first AI platform takes off
Venice AI, which provides access to over 200 AI models while preserving user privacy, has raised $65 million in Series A funding at a $1 billion valuation. The company is already profitable with annualized revenues exceeding $70 million and serves over 3 million active users.
Venice AI, a platform that gives users access to more than 200 AI models while keeping their data private, has seen rapid growth in just two years. It now boasts over 850,000 unique website visitors, 3 million active users, and an average of 1.7 million API calls per day. The company hosts "uncensored" open-source models on its own data centers and routes queries to closed-source models like those from OpenAI and Anthropic, encrypting all user input client-side and storing no data on its systems.
The startup is already profitable, with annualized run-rate revenues of over $70 million, according to CEO Erik Voorhees. This traction attracted investors, leading to a $65 million Series A round at a $1 billion valuation, the company's first external fundraising. The round was led by crypto-focused venture firm Dragonfly, with participation from Coinbase Ventures and North Island Ventures.
Voorhees, a well-known figure in the crypto space, emphasized the platform's focus on privacy and user freedom. He compared Venice AI to Bitcoin, calling it a "neutral tool" that should not restrict users. The platform allows users to freely choose from various AI models, including "uncensored" ones that are optimized for openness, and even features customizable AI characters for chat.
To attract users, Venice AI launched two crypto tokens: VVV and DIEM. Users can buy and stake VVV to mint DIEM, which generates $1 worth of AI credits per day. However, only about 8% of users pay with cryptocurrency. The company plans to use the new funds to purchase GPUs and build its own data centers, reducing reliance on leased GPUs and improving gross margins.
