London-based Valarian raised $50 million in Series A funding to develop sovereign AI infrastructure that gives nations and enterprises control over their AI systems, even when running on US cloud platforms.

The round was led by New Enterprise Associates, with participation from Lightbank, XTX Ventures, Litquidity Ventures, and Sequel. High-profile Silicon Valley investors Gokul Rajaram and Nikesh Arora also backed the company.

Valarian's software creates a governance layer that sits beneath AI systems used by governments and organizations. The technology determines how AI is deployed, when it's used, and who can access it — even when running on hyperscaler infrastructure from AWS or Microsoft.

"The intelligence layer of Western institutions is consolidating: quietly, contract by contract, department by department, into systems those institutions do not control," said CEO and co-founder Max Buchan.

The company addresses a key concern for sovereign AI deployments. Organizations can continue using US cloud infrastructure while maintaining operational control over their data and preventing scenarios where cloud providers might be compelled to hand over sensitive information to foreign governments.

Two-pronged market approach

Valarian will use the funding to accelerate deployment across enterprise and defense sectors. The enterprise focus targets organizations requiring operational control over AI systems, while the defense arm serves states and defense programs running mission-critical workloads.

The addressable market is substantial. The EU spent 392 billion euros ($449.3 billion) on defense in 2025 alone.

The company has backing from the UK government. "To shape our own destiny, in accordance with our values, it is imperative that we build Britain's sovereign AI capabilities," said Kanishka Narayan, Minister for AI and Online Safety.

Valarian's total funding now stands at $70 million. The company plans to expand its governance platform as demand for sovereign AI infrastructure grows globally, particularly among nations seeking to maintain control over critical AI deployments while leveraging existing cloud infrastructure.