Quick Facts
- Alice raised $140M led by Apax Digital, bringing total funding to $280M and valuing the company at nearly $1 billion.
- The company’s AI security business has grown more than 500% over two years, with annual recurring revenue nearing $100M.
- Alice works with eight of the ten leading AI model labs and says its technology protects more than three billion people online.
AI security startup Alice has raised $140 million in a new funding round, pushing its total capital raised to $280 million and valuing the New York and Tel Aviv-based company at nearly $1 billion, according to Bloomberg. The round was led by Apax Digital Funds, with Samsung, SentinelOne, and more than a dozen other investors participating.
The company, formerly known as ActiveFence, rebranded in January 2026 after pivoting from online content moderation toward direct security for AI models. Founded in 2018 by CEO Noam Schwartz, Iftach Orr, Alon Porat, and Eyal Dykan, the company spent years tracking fraud, disinformation, and platform abuse before shifting its focus to AI vulnerabilities.
The AI portion of the business has grown more than 500% over two years. Annual recurring revenue is approaching $100 million. Alice now counts Anthropic, Google, and Nvidia among its customers and says its systems are hosted by Amazon and Nvidia.
At the center of Alice’s platform is a proprietary dataset called Rabbit Hole, built over nearly a decade of tracking how malicious actors exploit digital platforms across more than 120 languages. The company uses that data to test AI models before launch, add runtime guardrails, and monitor production behavior.
The product suite, called WonderSuite, covers the full AI deployment cycle. WonderBuild handles pre-launch red-teaming. WonderFence provides runtime protection. WonderCheck monitors models in production. Alice’s researchers attempt to push models beyond their intended boundaries, including jailbreaks, prompt injection, unauthorized data disclosure, and unauthorized agent actions.
More than 150 researchers at Alice study how AI systems can be manipulated or made to fail. The company works with eight of the ten largest AI model labs.
“There are infinite ways to break an AI, and you can’t defend against something you’ve never seen,” Schwartz said. “We spent nearly a decade learning exactly how people abuse technology at the scale of billions, first on the world’s largest platforms and now on the models those same people are probing.”
Patrick Kane, a partner at Apax Digital, said the AI shift is creating a rapidly growing attack surface. “As adversaries increasingly use AI, defenders can turn to Alice for model testing and guardrails built on the largest proprietary data asset of adversarial techniques,” he said. Apax Digital will join Alice’s board as part of the deal.
The funding arrives as enterprises accelerate AI agent deployment, a trend that expands the number of potential attack vectors. Alice’s model is built on a feedback loop: real-world attacks inform new tests, those tests improve guardrails, and production behavior feeds back into both systems. The company says the approach becomes more effective as it observes more attacks and adds more customers.
Schwartz has pointed to the scale of illegitimate AI use as a core driver of demand. “Since there have been models, especially open models, their adoption by organizations is much higher by illegitimate organizations,” he said. “There is a lot of creation of applications that steal data, hoax campaigns, phishing, a lot of fraud.”
Read more: Alice raises $140M as its AI security business grows more than 500%