Solana Startup Arcium Completes Acquisition of Inpher
Solana-based SOL confidential computing startup Arcium has acquired Inpher, a competitor in the Web2 space, as reported by Lightspeed. This acquisition allows Arcium to integrate Inpher’s core team and technology, with terms undisclosed. This follows recent activity in crypto mergers and acquisitions, including Stripe’s acquisition of Bridge, raising expectations for more deals in the industry.
Initially named Elusiv, Arcium began as a Solana privacy protocol before transitioning to confidential computing. In May, the startup announced a $5.5 million funding round led by Greenfield Capital to develop fully confidential applications on the blockchain. However, Arcium has not yet launched its services.
During a meeting with Arcium's CEO Yannik Schrade, he highlighted the significance of confidential computing. He illustrated the issue of data security with a rhetorical question about sharing sensitive information, noting that while data is often encrypted, decrypting it for processing can create vulnerabilities. He mentioned potential uses of confidential computing in collaborative AI training to prevent data leaks.
Schrade described Inpher’s team as a “research-driven powerhouse” with extensive expertise in cryptography. He noted that Inpher, supported by investors like JPMorgan and the Amazon Alexa Fund, raised $14 million since its inception in 2016. Recently, Inpher has focused on facilitating secure and private AI interactions.
Confidentiality in confidential computing is essential, enabling multiple parties to collaborate or transact without mutual trust. However, advanced applications like zero-knowledge proofs—verifying information without disclosure—remain largely theoretical.
Schrade emphasized Arcium’s practical approach: “We’re not just producing academic research that may never see practical use. Instead, we’re building real technology and practical research with user-friendly interfaces that developers can utilize without needing to learn new concepts.”