Seattle-based tech entrepreneur Jesse Proudman is making waves once again with Venice.ai, a new AI-powered platform designed to prioritize privacy and uncensored interactions. Unlike mainstream AI tools from OpenAI and Anthropic, Venice takes a unique approach by ensuring that user inputs and responses are never stored on its servers.
A Private Alternative to Traditional AI Chatbots
Launched in 2023, Venice functions similarly to ChatGPT, Claude, and other leading AI assistants. However, what sets it apart is its commitment to privacy-first AI interactions. The platform employs an innovative architecture that prevents any logging or retention of prompts and responses.
“Think of it as a private version of ChatGPT,” said Jesse Proudman, CTO of Venice, in an interview with GeekWire. “Nothing that goes in or out of our models is ever recorded or stored.”
In addition to its privacy-first approach, Venice does away with the strict content moderation policies that competitors impose. This allows users to engage with AI in a way that feels more open and unrestricted.
“There’s a strong belief that people should have access to AI that isn’t manipulated or permanently linked to their identity,” added Teana Baker-Taylor, Venice’s Chief Operating Officer.
Growing User Base and Entrepreneurial Roots
Venice has already amassed a community of 850,000 registered users, with over 50,000 active daily users.
The startup is the latest venture from Proudman, who previously sold his cloud computing company, Blue Box, to IBM. He later founded Makara, a crypto investment startup that was acquired by Betterment in 2022.
Proudman reconnected with Erik Voorhees, a longtime friend and fellow entrepreneur, who now serves as CEO of Venice. Voorhees is well known in the cryptocurrency space, having previously led ShapeShift, a major crypto exchange.
“There are many things people want to keep private—things that don’t belong in a permanent record,” said Proudman. “Venice is designed to ensure that data stays on your device, not on our servers.”
Free Speech and Uncensored AI Conversations
Venice is also positioning itself as a champion of free speech in AI. In a blog post, Voorhees criticized the “weird, creepy, paternalistic censorship” embedded in mainstream AI platforms.
“We don’t believe it’s our role to regulate the thoughts users develop,” wrote Voorhees. “If people can think freely, they should also be able to engage with AI freely.”
To achieve this, Venice relies on open-source AI models. A system prompt instructs these models to “speak freely” and avoid self-censoring due to concerns about offense.
“This approach enables the AI to provide more balanced and uncensored responses,” explained Proudman.
However, the platform does implement safety measures to prevent abuse and illegal activities.
Business Model and Crypto-Powered API
Venice operates on a freemium model, offering a free AI chat experience while charging $18 per month for unlimited access and premium features.
Additionally, the company has introduced an innovative crypto-powered API. Instead of charging per request, Venice has launched its own cryptocurrency token, VVV, allowing users to gain access through staking.
Users who stake VVV tokens receive a proportional share of Venice’s AI processing capacity. For instance, staking 1% of the total supply grants access to 1% of Venice’s API capacity.
“This is the first company to tie token ownership to a share of AI compute power,” said Proudman. “Most AI APIs operate on a pay-per-use model in US dollars, but Venice offers an alternative.”
A Bootstrapped Startup with Big Ambitions
Venice is currently bootstrapped with a team of 20 employees, including four based in Seattle. The executive team includes:
- Jesse Proudman (CTO)
- Erik Voorhees (CEO)
- Teana Baker-Taylor (COO)
Baker-Taylor brings deep expertise in crypto and finance, having held leadership roles at Crypto.com, Binance, and Circle.
As AI continues evolving, Venice is making a bold bet on privacy and decentralization—two principles that set it apart in an industry dominated by data-hungry tech giants.
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