Alice raises $140M as AI security business grows more than 500%

Alice, an AI trust, safety and security company formerly known as ActiveFence, has raised $140 million in a funding round led by Apax Digital Funds. The company sells adversarial testing and guardrails for AI models, with frontier labs and large enterprises as customers.

Alice began in 2018 as a trust and safety vendor for consumer platforms, tracking fraud rings, extremist networks and coordinated manipulation. Its Rabbit Hole service holds what it calls the largest dataset of real-world adversarial and harmful content, which now supplies test cases for AI models.

The AI portion of the business has grown more than 500% over two years, and annual recurring revenue is nearing $100 million. The company works with most frontier labs, including Anthropic, Google and Cohere.

Chief executive Noam Schwartz said the industry is democratizing capabilities before defences, and the round is about closing that gap. Apax Digital partner Patrick Kane compared the shift to the cloud transition, noting the growing attack surface as enterprises roll out agents.

Other investors in the round include Samsung, SentinelOne, Maj Invest, MoreTech and Phoenix Insurance, with existing backers also participating. The company did not disclose its valuation, though Calcalist reported it at between $700 million and $800 million. Total funding raised by Alice now stands at $280 million.