Swiss startup Prem AI is seeking to raise $100 million to enable hedge funds and law firms to own their AI systems rather than merely renting them.

      **TL;DR:** Prem AI is seeking $100 million in funding at a valuation exceeding $500 million. The company provides private AI infrastructure for hedge funds and law firms, asserting that “enterprise intelligence must be owned, not rented.”

      Prem AI, a Swiss startup that enables hedge funds and law firms to operate AI models on their own infrastructure, is raising $100 million in a Series A funding round at a minimum valuation of $500 million. The firm anticipates finalizing the round in the third quarter. CEO and founder Simone Giacomelli emphasizes a clear message: “Enterprise intelligence must be owned, not rented.”

      Based in Lugano, the company had previously secured a $14 million seed round in 2024, followed by a $6.1 million bridge round at a valuation of $200 million. Notable investors include Jim Breyer (Breyer Capital), Index Ventures, Marvel Studios founder David Maisel, and Sequoia Capital China co-founder Fan Zhang.

      Prem develops AI solutions for organizations that cannot risk sending sensitive data to OpenAI or Anthropic. Their model is self-hosted, allowing AI to operate within the customer’s own environment. Combining security with a “ready-to-use application layer,” as Giacomelli describes, Prem provides clients with “absolute control without sacrificing usability.”

      In conjunction with the fundraising effort, Prem unveiled Fluso, an encrypted AI workspace that facilitates agents and automates tasks. This product is particularly tailored for firms that cannot afford to have data leave their premises due to regulatory, competitive, or security concerns.

      The timing aligns with a rising apprehension among companies regarding the “rented AI” model. Firms relying on OpenAI or Anthropic for API access must transmit their most sensitive information—such as legal documents, trading strategies, and client data—to external servers regulated by third-party terms of service. This issue of sovereignty pertains to companies as much as countries.

      Currently, Prem's team comprises 35 members and is in the process of expanding. The company falls in line with competitors like Databricks' on-premise AI solutions and self-hosted open-weight models from Meta and Mistral, but offers the entire stack—from model deployment to agent automation—as a cohesive product instead of just a toolkit.

      For hedge funds, the key value is competitive intelligence kept within the organization. For law firms, it involves privileged work that never interacts with third-party clouds. Both sectors face increasing risks when opting for American AI solutions, which may alter their terms, increase pricing, or potentially have to share data with government entities. The existing cloud reliance in Europe is already a political risk, and Prem is betting that it also presents a commercial opportunity.