By Pat Bumpus | May 19, 2022 | Investment

Cornami Raises $68M to Support Quantum Encryption

Science fiction image of cyborg using artificial intelligence.

Today, fabless semiconductor company Cornami announced it has closed a $68 million series C funding round led by Softbank Vision Fund 2.

Cornami has generated significant investor interest because it offers a TruStream Computational Fabric architecture that can deliver real-time computing power for critical and complex applications.

Its solution provides enterprises with a foundation they can use to accelerate Fully Homomorphic Encryption (FHE) to encrypt data against post-quantum threats faster. Cornami’s approach not only reduces application latency in the cloud and at the network’s edge, but also lowers the overall power consumption of apps.

The FHE race

The announcement comes as organizations are starting to recognize the potential risks of post-quantum threats. This comes after the White House released a memorandum noting that quantum computing poses a “significant risk” to the economic and national security of the United States.

Cornami is aiming to accelerate the race toward FHE by providing a high-performance computing solution that enables post-quantum encryption to function more efficiently.

“FHE has long been described as transformative for data privacy and cloud security. The algorithm was developed to enable computing on encrypted data sets; however, it is extremely compute-intensive,” said Wally Rhines, CEO of Cornami.

“Current processors cannot scale to meet performance requirements, making it impractical for commercial deployment. The existing approach for encryption schemes requires decrypting the data before using, creating vulnerabilities,” he added.

According to Rhines, Cornami’s focus on FHE enables organizations to extract valuable data analytics from enterprise apps without decrypting data and exposing it in plaintext, whether its intellectual property, personally identifiable information, or financial information.

A brief look at the quantum cryptography market

Just as Cornami is in a state of growth, researchers valued the global market for quantum cryptography at $128.9 million in 2022. They anticipate that it will reach a total value of $291.9 million by 2026 as more organizations invest in quantum computing to enhance their computing power and quantum cryptography to protect their data.

Cornami is competing against a number of extremely prominent providers including Nvidia, which recently announced raising quarterly revenue of $7.64 billion and offers a solution called Nvidia cuQuantum, an SDK of optimized libraries and tools designed to help developers accelerate quantum computing workflows.

It’s also competing against Intel, which develops “hot” silicon spin-qubits, computing devices that can operate at higher temperatures and recently sent quantum computing equipment to the U.S. Department of Energy’s Argonne National Laboratory (ANL) to be installed in Argonne’s quantum foundry to test new quantum materials and devices.

Right now, Rhines argues that Cornami’s flexibility and its ability to “dial the scale by sizing its compute fabric to meet specific customer requirements,” is what differentiates it from these larger providers.

Got A Big Idea?

Tell us more about your project.

We receive a lot of pitch decks, so it may take us a little while to get back to you if we think that there might be a fit. We hope to see you soon!