Protopia AI, a leader in AI data protection and privacy-enhancing technologies, has secured a $1.25 million Direct-to-Phase II Small Business Innovation Research (SBIR) contract from the U.S. Air Force to demonstrate its flagship Stained Glass Transform (SGT) technology. The contract, announced on July 31, 2025, will enable the Air Force Sustainment Center Software Directorate (AFSC/SW) to securely utilize proprietary code with AI developer tools while maintaining data confidentiality.
Addressing Critical Security Challenges in AI Development
The partnership addresses a fundamental challenge in modern software development: how to leverage the productivity benefits of coding large language models (LLMs) without compromising the security of proprietary codebases. Protopia's SGT technology protects code from prompts used for inference with coding LLMs, enabling secure use of proprietary codebases with cost-efficient generative AI for software development teams across the Air Force.
The technology's potential applications include securely unlocking on-premises AI infrastructure to serve coding LLMs, allowing multiple teams within AFSC/SW to interact with AI and developer tools without exposing their codebases in plain text on underlying shared infrastructure. This capability will provide developers and leaders throughout the organization access to cutting-edge productivity tools while maintaining security protocols.
Strategic Partnership with Military Applications
"Protopia AI is honored to receive the AFWERX Direct-to-Phase II award and is excited to partner with the AFSC/SW Directorate," said Eiman Ebrahimi, CEO and Co-Founder of Protopia AI. "This collaboration highlights the critical need for dual-use technologies that enable secure and cost-efficient adoption of generative AI in both mission-critical environments and commercial applications."
Ebrahimi emphasized the importance of empowering software development teams within the Air Force and Department of Defense to leverage LLMs without risking the confidentiality and proprietary nature of their code. The contract was competitively selected through the AFRL/AFWERX Small Business Innovation Research program, which encourages small businesses to engage in federal research and development with commercialization potential.
Technology Foundation and Market Position
Protopia AI's patented Stained Glass Transform technology eliminates plaintext exposure during AI inference, ensuring sensitive data remains protected even when using managed models or infrastructure. The company serves as a trusted partner to organizations in regulated industries including financial services, healthcare, the public sector, research, manufacturing, and high-tech sectors.
The company has established credibility in the defense sector as the first-place winner of xTechScalable AI2 by the US Army. This latest contract represents a significant milestone for Protopia AI, further solidifying its reputation as a reliable and innovative technology partner for military and government agencies.
Air Force Software Modernization Initiative
The Air Force Sustainment Center Software Directorate plays a crucial role in modernizing and maintaining the Air Force's software capabilities, overseeing the entire lifecycle of mission-critical software systems from initial design and development through deployment and sustainment. The directorate embraces Agile development and DevSecOps principles, utilizing CI/CD pipelines and automated testing to accelerate delivery while enhancing quality and security.
AFSC/SW focuses on cloud computing and migration as key areas, enabling improved scalability and faster deployment. The directorate actively explores and implements AI/ML technologies to enhance various capabilities while maintaining cybersecurity as a paramount concern throughout the software lifecycle.
Broader Defense Innovation Context
The contract operates within the broader AFWERX ecosystem, which serves as the innovation arm of the Department of the Air Force and a directorate within the Air Force Research Laboratory. AFWERX employs approximately 370 military, civilian and contractor personnel across four hubs and sites, executing an annual $1.4 billion budget. Since 2019, AFWERX has awarded over 10,400 contracts worth more than $7.24 billion to strengthen the U.S. defense industrial base and drive faster technology transition to operational capability.
