Lattica Emerges from Stealth to Solve AI’s Biggest Privacy Challenge with FHE

Tel Aviv, Israel, April 23rd, 2025, CyberNewsWire

Lattica, an FHE-based platform enabling secure and private use of AI in the cloud, has emerged from stealth with $3.25 million in pre-seed funding. The round was led by Konstantin Lomashuk’s Cyber Fund, with participation from angel investor Sandeep Nailwal, co-founder of Polygon Network and Sentient: The Open AGI Foundation, among others.

Lattica’s technology represents a critical new standard for industries such as healthcare, finance, and government sectors, where data privacy and security concerns have limited AI adoption. According to Cisco’s 2025 AI Briefing: CEO Edition, 70% of CEOs surveyed admitted being concerned about the state of their networks due to the rising adoption of AI, with 34% citing security as a major barrier to adoption.

Fully Homomorphic Encryption (FHE) – the “holy grail” of cryptography in the last decade – ensures all communication between AI providers and end users remains encrypted, without needing to decrypt it, but due to longstanding computational inefficiencies, FHE has yet to be widely adopted. By capitalizing on the latest breakthroughs in the AI acceleration stack, Lattica leverages advanced acceleration techniques to operationalize FHE.

Led by founder and CEO, Dr. Rotem Tsabary, who holds a PhD in lattice-based cryptography from the Weizmann Institute of Science, Lattica takes advantage of the foundational mathematical similarities between FHE and machine learning to offer a hardware-agnostic, cloud-based platform that utilizes FHE to deliver secure and private use of AI.

A key differentiator powering Lattica’s solution is its Homomorphic Encryption Abstraction Layer (HEAL), which enhances FHE performance and standardizes its acceleration. A cloud-based service, HEAL serves as a universal bridge connecting FHE applications and AI algorithms across a diverse range of hardware, including GPUs, TPUs, and CPUs, as well as dedicated accelerators like ASICs and FPGAs.

“By combining the advancements of hardware acceleration with software-based optimization, we realized that not only could we improve FHE efficiency to the point of commercial viability, but use it to solve critical data dilemmas holding back AI’s adoption in sensitive industries,“ said Dr. Rotem Tsabary, founder and CEO of Lattica. “We’re enabling practical FHE by developing a solution that is tailor made for neural networks.”

As part of its emergence from stealth, Lattica has made demos of the platform available on its website, alongside insights from an in-depth survey within the FHE community. Survey results validate Lattica’s approach, revealing that a majority (71%) of respondents believe FHE adoption will be achieved through a combination of hardware and software.

“Lattica is pushing the boundaries of Fully Homomorphic Encryption, solving one of the most critical challenges in AI security,” said Konstantin Lomashuk, Managing Partner at Cyber Fund. “Cyber Fund is proud to have led Lattica’s pre-seed round. This is the kind of deep-tech innovation that defines the future, and we’re excited to see Lattica leading the way.”

Lattica’s focus on healthcare and finance further underscores the platform’s relevance, with potential applications in secure data analysis for medical research and encrypted financial transactions.

“Lattica’s product-first approach fundamentally transforms sensitive data processing in the AI ecosystem,” said Sandeep Nailwal, co-founder of Polygon Network and investor in Lattica. “Lattica has made FHE a reality that is both practical and scalable, as Tsabary and her research team is proving that advances in the machine learning stack can significantly boost the performance of FHE and have an immediate impact on the market.”

About Lattica

Lattica enables querying AI models with Fully Homomorphic Encryption, offering FHE as a hardware-agnostic, cloud-based service. The platform leads in scientific innovation by ensuring that user queries remain encrypted throughout the entire machine learning inference process. Lattica’s Homomorphic Encryption Abstraction Layer (HEAL) connects FHE applications, algorithm implementations, and diverse hardware backends, making secure AI computation as accessible as traditional cloud-based AI services. The company is headquartered in Tel Aviv. For more information, users can visit www.lattica.ai.

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Jordan Chaim
InboundJunction
jordan@inboundjunction.com