Cloud data privacy solutions provider Skyflow Inc. today announced that it has raised $30 million in new funding to expand its privacy vault solutions and to meet complex data localization requirements amid growing concerns for sensitive-data protection in AI applications.

Founded in 2019, Skyflow offers a data privacy vault that integrates with any tech stack and, the company says, makes it easy to enforce privacy policies across any app, data cloud and large language model. The vault was designed to simplify how companies isolate, protect and govern their customers’ most sensitive data. It offers a global network of data privacy vaults for companies looking to securely implement LLMs and meet complex data localization requirements.

The company argues that as LLM adoption is increasing, there are few data protection mechanisms in place, putting compliance, security and privacy at risk. The issue, as they see it, is that once sensitive data enters a model it’s almost impossible to remove, making data deletion request – as required by new privacy laws – much more difficult.

Skyflow acts as a privacy trust layer to assist companies in preventing sensitive data from going into AI models in the first place. Customers can define sensitive terms as they see fit, allowing them to protect sensitive information even beyond personally identifiable information or company intellectual property.

The company provides its service using a proprietary technology called “polymorphic encryption.” The Skyflow-designed encryption method is said to make it possible to protect data without sacrificing its usability for critical business operations, such as analytics, marketing and customer support.

Skyflow counts among its customers GoodRx Holdings Inc., Lenovo Group Ltd. and Hippocratic AI LLC. It processes more than 2 billion application programming interface calls quarterly.

Khosla Ventures LLC led the Series B round, with previous investors Mouro Capita LP, Foundation Capital LLC and Canvas Ventures Co. Ltd. also participating.

“With the advent of enterprise applications powered by AI, the need for trust and privacy infrastructure is key to protecting sensitive data,” Vinod Khosla, founder of Khosla Ventures, said in a statement. “Skyflow is rethinking how data can be managed and protected across any app, cloud or LLM, making it a company that will be vital for every enterprise business.”

Including the new funding, Skyflow has raised $100 million to date, according to data from Tracxn.

Anshu Sharma, co-founder and chief executive officer at Skyflow, spoke with theCUBE, SiliconANGLE Media Inc.’s livestreaming studio, in July, on how the company streamlines data privacy with a zero-trust vault. In the interview, Sharma discussed how the company’s vault allows sensitive data to be searchable even when encrypted.

Image: Skyflow