Valarian raises $50 million for AI sovereignty software

Valarian has raised $50 million in Series A funding as governments and companies seek tighter control over AI systems and sensitive data hosted on cloud infrastructure, Fortune reported. The round was led by NEA and brings the London-based startup’s total funding to $70 million, according to Fortune.

Fortune reported that the investment is NEA’s first defense and dual-use deal in Europe. The round places Valarian in a growing market for software meant to reduce dependence on U.S. technology providers while keeping access to major cloud platforms.

Valarian is led by co-founders Max Buchan and Josh McLaughlin, according to Fortune. McLaughlin previously worked as a managing director at Palantir, Fortune reported.

The company’s product, called ACRA, sits beneath AI workloads and sensitive applications, Fortune reported. Valarian says the software lets government agencies and enterprises set controls over how AI systems operate, what data they can use and who can turn them off.

Fortune reported that Valarian’s system can be used while customers continue running on cloud infrastructure from companies such as Amazon and Microsoft. The software is designed to control which data leaves an environment, who can access it and under what conditions, according to Fortune.

The company’s pitch is tied to concerns over the U.S. CLOUD Act, Fortune reported. The Electronic Privacy Information Center says the law can allow U.S. authorities to compel American companies to provide data they store, even when that data is held outside the United States.

Buchan told Fortune he began arguing for infrastructure sovereignty before the issue became common in policy and corporate technology discussions. He said Western governments were giving too much operational control to large U.S. technology companies and could lose authority over the systems used for intelligence and infrastructure.

Fortune reported that Buchan viewed cloud concentration as a risk even before Russia’s full-scale invasion of Ukraine. He said many enterprises previously split their cloud operations across U.S., European and Asian servers without treating that setup as a weakness.

The funding comes as European security and technology debates intensify. Fortune cited figures from the Stockholm International Peace Research Institute showing European defense spending reached $447 billion last year.

Fortune also reported that an incoming U.K. prime minister is moving to cancel a state contract with Palantir, amid a broader European reassessment of ties to the U.S. data company. Buchan told Fortune that U.S. government action affecting Anthropic’s overseas access this year sharpened concerns about relying on foreign-controlled infrastructure.

“No one could use their model anymore, because the president of another country had shut it off,” Buchan told Fortune.

Mustafa Neemuchwala, the NEA investor who led the round, told Fortune that Valarian differs from some defense startups because it does not rely on factories or weapons testing. “If this company fails, it’s not going to be because they overspent on a production facility,” he told Fortune.

This story draws on original reporting from Fortune.