WebAI Reaches $2.5B Valuation to Build On-Device, Privacy-First AI

WebAI has raised a new round of funding at a $2.5 billion pre-money valuation, marking a sharp step up for the Austin-based artificial intelligence company as interest builds around privacy-preserving and sovereign AI systems.

Founded in 2021, WebAI develops on-device AI software designed to allow organisations to deploy advanced models without sending sensitive data to the cloud. The approach has found traction among enterprise and public-sector customers concerned about data security, regulatory exposure and control over proprietary information.

The latest round included backing from investors such as Time VenturesDealroom has a profile for this one. Try Dealroom →, Atreides ManagementDealroom has a profile for this one. Try Dealroom →, Forerunner and Oxcart VenturesDealroom has a profile for this one. Try Dealroom →. Financial terms beyond the valuation were not disclosed.

The raise follows a rapid ascent for the company, which emerged publicly in 2024 with a valuation of about $700 million before securing a series of commercial partnerships.

Alongside the funding, WebAI said it is launching an Intelligence Labs unit led by Dr PJ MaykishDealroom has a profile for this one. Try Dealroom →, a former US intelligence official, as it looks to deepen research and expand applications across defence, aviation and other security-sensitive industries. The company has also been building out its public-sector presence, including an office in Virginia and senior hires focused on government work.

WebAI is headquartered in Austin, where it has expanded its footprint to multiple floors of a downtown tower and plans to add its branding to the building. The company employs around 150 people and expects headcount to rise to about 200 in the near term.

With concerns over data sovereignty and privacy moving up the agenda, WebAI is positioning itself as a provider of AI infrastructure that can operate closer to the source of data, rather than in centralised platforms.

Sources:
WebAI
Business Journals
Axios

J.V.