Europe’s race for digital independence is accelerating. As governments become increasingly concerned about relying on foreign technology providers, one startup has secured fresh funding to build AI infrastructure that gives countries greater control over their data, cloud systems and national security.
London-based defense technology startup Valarian has raised $50 million in a Series A funding round to expand its AI infrastructure platform. The investment was led by New Enterprise Associates (NEA) and marks the venture firm’s first defense-focused investment in Europe.
The latest funding brings Valarian’s total capital raised to $70 million. The company plans to use the money to grow its engineering team, expand across Europe and strengthen partnerships with governments and large enterprises. Valarian is not trying to compete with cloud providers such as Microsoft Azure, Amazon Web Services (AWS) or Google Cloud.
Instead, it builds software that sits on top of those platforms. Its technology allows governments and organisations to decide where sensitive information is stored, who can access it and how artificial intelligence systems operate without giving up the benefits of major cloud services. The company’s flagship platform, known as ACRA, creates a secure control layer for AI workloads.
That means organisations can continue using existing cloud infrastructure while keeping tighter control over sensitive data, security policies and regulatory requirements. This approach allows countries to reduce their dependence on foreign technology providers without rebuilding their digital infrastructure from scratch.
Valarian co-founder Josh McLaughlin, a former executive at Palantir, believes the demand for digital sovereignty has reached a turning point. Governments are becoming increasingly concerned about relying on overseas companies to manage critical AI infrastructure, especially as geopolitical tensions continue to rise and cyber threats become more sophisticated. Those concerns have grown significantly across Europe.
Several governments have increased defense spending while searching for ways to strengthen their digital independence. Artificial intelligence has become a key part of that strategy, particularly for military operations, intelligence analysis, emergency response and other national security functions. The company’s investors believe that trend is only beginning.
Rather than investing in another AI model developer, they see greater long-term value in the infrastructure that supports artificial intelligence. As AI adoption grows, secure platforms that manage data, compliance and access controls could become just as important as the models themselves. Valarian also benefits from a changing investment landscape.
See Also: Europe’s Tech Defense Giant Helsing Raises $1.8 Billion at $18 Billion Valuation
Defense technology, once considered a niche sector by many venture capital firms, is attracting record amounts of funding as governments modernise their military capabilities and seek greater technological independence. The company’s business model also gives it flexibility.
Because it works alongside existing cloud providers instead of replacing them, organisations can adopt Valarian’s technology without making major changes to their current systems. That could make adoption faster and less expensive for both governments and private companies.
The funding reflects a broader shift taking place across the technology industry. For years, the conversation around artificial intelligence focused on building smarter models and more powerful applications. Today, another question is becoming just as important.
Who controls the infrastructure that powers those systems? As AI becomes part of national security, healthcare, finance and critical public services, governments are beginning to view digital sovereignty as more than a technology issue. They increasingly see it as a matter of economic resilience, national security and long-term independence.
About the Author
Marcel Chidozie is a tech analyst and writer covering foreign news, fintech, and emerging technologies at TechRegard. Based in Nigeria, He's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. His work focuses on how technology shapes innovation across Africa and globally.
