Confidential Computing Spur AI Security Investments in Finance, Tech Sectors

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Dory, the first AI assistant built on confidential computing technology, is making waves in the financial and technology sectors. The tool leverages advanced encryption and secure processing to handle sensitive data, aligning with growing regulatory demands for data protection and privacy. This development comes as enterprises across industries ramp up investments in secure AI solutions.

Confidential computing is gaining traction, particularly in regulated markets like finance and healthcare, where data sovereignty and compliance are critical. A recent IDC study highlights how frameworks like DORA are pushing organizations to adopt technologies that protect data in use. Meanwhile, companies like Fortanix are partnering with HPE and NVIDIA to bring secure AI infrastructure to market.

The market for secure data technologies is expanding rapidly. A $124.282 billion data exfiltration prevention market is projected for 2025 to 2030, fueled by rising cyber threats and regulatory compliance needs. In parallel, the $10.5 billion enterprise data loss prevention market is also seeing strong growth, driven by similar factors.

How Markets Reacted

C3.ai, a major player in enterprise AI, recently posted revenue of $75.15 million for its second quarter, exceeding expectations despite a 20% year-over-year decline. Investors remain cautiously optimistic, with Wedbush maintaining its Outperform rating and $20 price target for the company. The firm cited a "good step in the right direction" as C3.ai adapts to leadership changes and market shifts.

Meanwhile, Datavault AI reported Q3 growth and licensing momentum, with management projecting $200 million in revenue for FY26. Key contributors to this outlook include royalty income from platforms like Wellgistics and Scilex, as well as expanding revenue from RWA tokenization and Acoustic Science integration. The company is also eyeing opportunities in tokenized assets such as gold and carbon credits.

What Analysts Are Watching

Investors and analysts are closely monitoring the pace of adoption for confidential computing and tokenized assets. The IDC study noted that public cloud users are the most likely to implement confidential computing, with financial services leading the charge. Companies like Fortanix are embedding secure AI solutions in HPE's AI infrastructure, enabling enterprises to scale securely while complying with global data laws.

Tokenized assets are another focal point. Datavault's projection of $120 million in revenue from 20–30 mid-to-large RWA contracts highlights the potential for tokenization in high-value markets. The company's partnerships and integrations with audio technologies and digital twins also suggest a broader roadmap for diversification.

Risks to the Outlook

Despite the bullish forecasts, Datavault faces potential risks, including slower-than-expected scaling of RWA licensing or recurring royalties. Challenges such as integration complexity and market volatility could delay growth. Similarly, in the cybersecurity space, implementation costs and performance concerns remain barriers to broader adoption of DLP and DEX solutions. Additionally, regulatory scrutiny is intensifying, as seen with the FTC investigating TP-Link's alleged misleading claims about its U.S. operations. These risks underscore the need for transparent and compliant growth strategies.

What This Means for Investors

For investors, the intersection of AI and secure computing represents a high-growth opportunity. Companies that successfully integrate confidential computing into their AI infrastructure—like Fortanix, HPE, and NVIDIA—are likely to benefit from expanding demand in regulated sectors. Additionally, firms with strong licensing models, such as Datavault and C3.ai, could see upside from recurring revenue streams and strategic partnerships.

Tokenization and blockchain-based credentialing are also emerging as attractive plays. TIVA's expansion into global credentialing infrastructure and Solmate's RockawayX acquisition signal broader use cases for tokenized incentives beyond traditional crypto markets. These innovations could redefine compliance and reward systems in sectors like healthcare, education, and logistics.

As the landscape evolves, investors should monitor execution risks, regulatory updates, and technological advancements. The coming quarters will be pivotal in determining whether these companies can scale profitably and maintain their competitive edge.