Podcast Episode 59

Episode 059 42 min

Neil Serebryany, Founder & CEO of CalypsoAI: Securing AI's Future and Tackling Tomorrow's Risks

with Neil Serebryany · CalypsoAI

0:00 / 42:00

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Episode 59 of The Security Podcast of Silicon Valley, published December 4, 2024. Hosts Jon McLachlan and Sasha Sinkevich, co-founders of YSecurity, talk with Neil Serebryany, the founder of CalypsoAI, which secured the way companies use AI models. Neil explains how time at the National Geospatial-Intelligence Agency led him to AI security, why secure AI is about risk reduction, the two places AI needs new protection, the AI laws taking shape in 2024 from the EU AI Act to California's frontier AI bill, the scanner wars and the language problem behind them, why CalypsoAI focused on companies that use models rather than build them, the Department of Defense as a first customer, and the four reinsurers behind much of the world's insurance.

Episode notes

Neil Serebryany, Founder and CEO of CalypsoAI, shares his fascinating journey from the National Geospatial-Intelligence Agency to leading a cutting-edge AI security company. We dive into the evolving landscape of AI risks, data protection, and regulatory challenges while exploring the future of AI as it transforms industries and society. Learn how CalypsoAI is paving the way for secure AI adoption and what it means for the future of business and innovation.

Hosted by Jon McLachlan and Sasha Sinkevich — co-founders of YSecurity.

The deep dive

The scanner to rule them all

Neil Serebryany, the founder of CalypsoAI, on what secure AI means, the two places protection has to go, the AI laws taking shape in 2024, the scanner wars and the language problem behind them, the Defense Department as a first customer, and why most of the reward from a new technology comes from innovation, not invention.

Neil Serebryany came to security through a problem, not an industry. He wanted to use AI at a scale no team of people could match, and he learned early that anything you depend on is something someone else will try to break.

“if you’re using a technology, you have to assume that someone else is trying to figure out how to disrupt your use of that technology.”

Neil Serebryany, at 3:05

Listen · Neil on episode 59, from 2:35
About 40 seconds: Neil on the agency that had too much data, and why using AI means planning for someone who wants to disrupt it. The clip stops on its own. Read the full transcript.

Neil founded CalypsoAI in September 2018 and led it as founder and chief executive until August 2024 (LinkedIn). The company described itself as “Founded in Silicon Valley in 2018,” backed by Paladin Capital Group, Lockheed Martin Ventures, Lightspeed Venture Partners, 8VC, Hakluyt Capital and Empros Capital (LinkedIn). Its platform secured the way companies use AI models at the point where people and applications talk to them, which the company called the inference layer (F5).

Jon McLachlan and Sasha Sinkevich hosted. The conversation was recorded on July 8, 2024, and aired on December 4, 2024, as episode 59, with a single paragraph of show notes. In between, Neil’s run as chief executive ended, California’s governor vetoed the frontier AI bill then before the legislature, and the EU’s AI Act came into force. In September 2025, F5 announced it would buy CalypsoAI.

This page is the rest of it: a section for each part of the conversation with the sources beside it, eleven figures, twenty clips from the tape, the full transcript, and four tools: a quiz, a scorecard for how well your AI deployments are guarded, a calculator for how fast detection work multiplies across data types and languages, and a timeline from Edison’s first power plant to F5 AI Guardrails.

Assume someone is trying to disrupt it

Jon asked the show’s first question, how Neil got into security. The answer started with AI. Neil had always been interested in what mimicking the human brain on GPUs could do for society, because a human brain’s capacity is fixed and a machine’s can be copied again and again. That interest took him to the National Geospatial-Intelligence Agency.

“And they had this mission to see and understand the world.”

Neil Serebryany, at 2:41

The NGA is a combat support agency inside the Department of Defense whose job is collecting, analyzing and distributing geospatial intelligence. It was founded in 1996 as the National Imagery and Mapping Agency, took its current name in 2003, and has its headquarters in Springfield, Virginia (Wikipedia). Neil’s LinkedIn lists a 2018 innovation role at the Department of Defense in Virginia, the year he founded CalypsoAI (LinkedIn).

As Neil put it, the entire world produces an enormous amount of data.

“they had no way to be able to analyze it at scale without leveraging AI.”

Neil Serebryany, at 2:56

Once an agency depends on AI to do that work, the AI becomes a target. That’s where security came in, and the question Neil said he started with is still the right one for any company adopting AI today.

“How do I leverage this technology in a secure way where I understand what my risks are?”

Neil Serebryany, at 3:18

Four boxes in a row joined by arrows. Open, see the world, the agency's mission. Open, too much data, the world makes plenty. Filled, use AI at scale, the only way to read it. Dashed, assume an attacker who wants to disrupt it. Below, three notes: the National Geospatial-Intelligence Agency is a combat support agency inside the Department of Defense. It was founded in 1996 as the National Imagery and Mapping Agency and renamed in 2003. Neil's question from there: how do I use this technology securely, and understand my risks?
How a data problem became a security problem.

Risk reduction, not perfection

Jon asked what secure AI means, since everyone brings a different idea to it. Neil started where security always starts. There’s no such thing as a perfectly secure system.

“Just like everything else in security, it’s really about risk reduction”

Neil Serebryany, at 3:51

Listen · Neil on episode 59, from 3:42
About 20 seconds: Neil on why secure AI is a matter of reducing risk. The clip stops on its own. Read the full transcript.

At its most basic, he said, secure AI is the same discipline applied to a new kind of system.

“it’s really just having a system of controls and potentially technology in place to enable you to better monitor and control for AI-specific risks.”

Neil Serebryany, at 4:16

Two places to protect

Sasha pushed on that. AI still runs on infrastructure that has to be protected, and on data that has to be protected.

“the security in the AI is not different from the core concepts of the security as we know them in the existing systems.”

Sasha Sinkevich, at 4:32

So what’s new? Neil said the new protection goes in two places. The first is the model itself.

“One is on the underlying model side of the house, where you need a different set of techniques in order to be able to protect against people poisoning your data”

Neil Serebryany, at 5:15

Listen · Neil on episode 59, from 5:11
About 25 seconds: Neil on the model side: data poisoning and tampering with training. The clip stops on its own. Read the full transcript.

Data poisoning means slipping bad examples into the data a model learns from, so the model learns the wrong thing. It’s one of the attack classes in adversarial machine learning, and NIST’s taxonomy of these attacks, published in January 2024, puts poisoning beside evasion and privacy attacks (NIST). Two of that report’s four authors were from Robust Intelligence, co-founded by Yaron Singer, who was our guest on episode 65.

The second place is deployment, and that’s where Neil spent most of his time. A company won’t have one model. It will have several, plus the applications and agents built on them.

“you need some way to be able to have visibility across that entire kind of potential attack surface, some way to control the kind of data ingress and egress”

Neil Serebryany, at 6:06

Listen · Neil on episode 59, from 5:49
About 30 seconds: Neil on the deployment side: many models, applications and agents, and the data moving in and out. The clip stops on its own. Read the full transcript.

The last piece he named was compliance, which he expected to become an increasingly large part of the AI surface.

Two filled boxes side by side. Left, the model side, what the model learns from: data poisoning, bad examples slipped into the data a model learns from, and tampering with training and retraining. Right, the deployment side, where people and apps use it: many models, applications and agents at once, visibility across the whole attack surface, control of the data going in and out, and compliance, a growing part of the work. Below, one dashed box across both: underneath both, the security you already know. Sasha's point: protect the infrastructure and the data, as with any system.
The two places Neil said AI needs new protection.

The regulatory footprint you already have

Sasha asked which regulations to watch. Neil’s first answer was that companies already live under AI rules, because AI runs on data and data is already regulated.

“you already have your kind of existing regulatory footprint”

Neil Serebryany, at 7:02

He named Europe’s GDPR, California’s consumer privacy law (the California Consumer Privacy Act), and the privacy rules in Canada and Japan. Then he predicted how the new rules would arrive in the US.

“In the US, it’s likely that we’re going to be legislating in the same way as we have for privacy, on a state-by-state level, before we do anything on a federal level.”

Neil Serebryany, at 7:34

Listen · Neil on episode 59, from 7:33
About 20 seconds: Neil on AI laws arriving state by state, starting with California. The clip stops on its own. Read the full transcript.

He also pointed to a broader trend he called AI nationalism, with legislation in Japan, Canada, the UK, India and China.

Three columns. Open, rules you already have, privacy and data: GDPR in Europe, California's consumer privacy law, and privacy rules in Canada and Japan. Filled, new AI laws arriving in 2024: the EU AI Act, sorted by risk, California's frontier AI bill, and in the US, state by state before federal. Dashed, AI nationalism, laws by country: Japan and Canada, the UK and India, and China.
The rules Neil mapped in July 2024.

The California bill

Sasha asked about the new California act Neil had mentioned. He didn’t name it, but the bill moving through Sacramento that summer that matches his description is SB 1047, the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act. Neil separated the companies that build foundation models from the companies that fine-tune or use them. For the builders, he listed the obligations.

“they have to effectively do kind of safety testing of these models prior to deploying them into production.”

Neil Serebryany, at 9:21

Listen · Neil on episode 59, from 9:16
About 35 seconds: Neil on what the California bill asked of foundation model developers. The clip stops on its own. Read the full transcript.

He called the testing AI red teaming, and added the ability to shut a model down and protections for whistleblowers.

“They have to have the ability to shut down their AI system, and they have to effectively have whistleblower protections in place for these foundation model companies.”

Neil Serebryany, at 9:38

The bill would have applied to models that cost more than $100 million to train, to any AI company doing business in California, and it would have required risk assessments before release along with whistleblower protections (Wikipedia). On the day we recorded, it had passed the state Senate 32 to 1 on May 21, 2024. The Assembly passed it 48 to 16 on August 28, and Governor Gavin Newsom vetoed it on September 29, 2024 (California Legislature).

California came back to the idea a year later. SB 53, the Transparency in Frontier Artificial Intelligence Act, was introduced by Senator Scott Wiener in January 2025 (Wikipedia) and approved by the governor on September 29, 2025, as Chapter 138 of the Statutes of 2025 (California Legislature). It applies mainly to the largest developers, asks them for transparency about catastrophic risks, and sets up whistleblower protections and a way to report critical safety incidents to the state (Wikipedia).

A timeline of seven entries. Open, February 7, 2024, introduced: SB 1047, the frontier AI bill, enters the state Senate. Open, May 21, 2024, Senate: passed 32 to 1. Dashed, July 8, 2024, we record: Neil describes safety testing, a way to shut a model down, and whistleblower protections. Open, August 28, 2024, Assembly: passed 48 to 16. Filled, September 29, 2024, vetoed: Governor Gavin Newsom vetoes the bill. Open, January 2025, SB 53: Senator Scott Wiener introduces a transparency bill for frontier AI. Filled, September 29, 2025, law: SB 53 is approved, Chapter 138 of the Statutes of 2025.
The California bill on the tape, and what happened to it.

The EU AI Act, and telling people it’s AI

In Europe, Neil said, the new law sorts AI systems by risk.

“In Europe, you have the new kind of EU AI Act, and you have different sets of restrictions based on high risk, medium risk, low risk systems.”

Neil Serebryany, at 7:54

Sasha added one rule every company that ships a chatbot should know.

“one of the requirements is to disclose the fact that the user is communicating with the system that is powered by AI.”

Sasha Sinkevich, at 8:19

The Artificial Intelligence Act was proposed in April 2021, passed the European Parliament on March 13, 2024, and was approved by the EU Council on May 21, 2024. It entered into force on August 1, 2024, three weeks after we recorded, with its provisions phasing in over the following 6 to 36 months. Unacceptable-risk uses are banned, high-risk applications must meet security, transparency and quality obligations and pass conformity assessments, and limited-risk systems carry transparency duties, “ensuring users are informed that they are interacting with an AI system” (Wikipedia). That last one is the rule Sasha described.

Left, four stacked boxes for the risk tiers. Filled, unacceptable risk, banned. Open, high risk, security, quality, assessments. Open, limited risk, tell users it's AI. Dashed, minimal risk, spam filters, video games. Right, a timeline of the phase-in. Filled, August 1, 2024, in force, three weeks after we record. Then open entries: plus 6 months, bans on unacceptable risk. Plus 9 months, codes of practice. Plus 12 months, general-purpose AI. Plus 24 months, everything else. Plus 36 months, some high-risk obligations.
The EU AI Act's risk tiers and its timetable.

One command footprint

Jon asked where CalypsoAI fits and what it does better than anyone else. Neil’s answer was about not knowing the future.

“We allow you to prepare for this AI future.”

Neil Serebryany, at 10:26

A company doesn’t know which model it will use going forward, which agents, or how much AI sprawl it will have across countries with different rules. What it can have is one place to watch all of it.

“you need one place to be able to have visibility across all of that AI usage”

Neil Serebryany, at 10:48

Listen · Neil on episode 59, from 10:24
About 35 seconds: Neil on one place to see all of a company's AI use, and the freedom to swap the model underneath. The clip stops on its own. Read the full transcript.

From that one place, he said, a company should be able to change out the model underneath, control which data flows into and out of its models, and block AI-specific attacks such as prompt injection, where someone hides instructions in content the model reads.

“And so we give you that command place, or that command footprint, to be able to understand what you’re doing across your AI usage, to be able to govern and secure it.”

Neil Serebryany, at 11:16

OWASP’s list of the top risks for large language model applications puts prompt injection first in its 2025 edition, defined as “when user prompts alter the LLM’s behavior or output in unintended ways” (OWASP).

Three rows joined by arrows. Top, four open boxes: models, you'll swap them. Agents, more every year. Applications, chatbots and tools. Jurisdictions, different rules. Middle, one wide filled box: one command footprint, visibility across all of a company's AI use. Bottom, four dashed boxes: swap the model without new controls. Control the data going in and out. Block attacks such as prompt injection. Govern and secure across every deployment.
What Neil meant by one command footprint.

Productivity is the prize

Jon asked what success looks like for CalypsoAI, as far into the future as Neil liked. Neil answered with economics. In his telling, labor productivity has stagnated in the US for a couple of decades and has been falling in the EU since COVID, and productivity is what global wealth has been built on since the post-Malthusian era, when economies broke out of the pattern Thomas Malthus described, in which population growth caught up with every gain in output.

“it’s really been based on labor productivity, much more so than like the determinants of land.”

Neil Serebryany, at 12:19

Listen · Neil on episode 59, from 12:02
About 40 seconds: Neil on why productivity, more than land, is what AI could move. The clip stops on its own. Read the full transcript.

AI is a technology that can raise productivity, so the goal is to let companies use any vendor and any model while keeping control over all of it.

“success for us is really enabling as much AI adoption as possible”

Neil Serebryany, at 13:01

Sasha came back to the point later in the episode, saying US productivity levels are the lowest since the Second World War, and that AI could help people get through daily work faster and with more accuracy. The Bureau of Labor Statistics publishes the official US productivity measures if you’d like to check the trend yourself (BLS).

Process change first

Sasha asked about the biggest pain point for a company trying to adopt AI, while granting there’s no such thing as an average company. Neil gave a non-technical answer and a technical one. The non-technical one came first.

“the non-technical answer is really process change inside of this organization.”

Neil Serebryany, at 13:55

Listen · Neil on episode 59, from 13:55
About 35 seconds: Neil on why the hard part of adopting AI is redesigning jobs and processes. The clip stops on its own. Read the full transcript.

To get the full benefit of AI, he said, and “most organizations are not there today,” a company has to rethink what jobs and processes look like, knowing an AI system will only do part of any one job. The technical answer was to be clear about which use cases come first, and to be able to swap or modernize the infrastructure underneath as AI keeps changing. That’s the same argument our own Art and Zen of Adopting AI makes about where AI’s value gets lost.

Three layers

Jon laid out the market as he saw it in 2024. At the bottom, a few big companies build the core models, because it takes a lot of resources. In the middle, task-specific companies build services on top of those models, things like code completion and little helper coaches. At the top sits the rest of the economy, traditional companies such as Toyota, food companies and agricultural companies that consume those services. Where does CalypsoAI fit?

Neil’s answer was the two layers that use models, not the one that builds them. Protecting the foundation models themselves, he said,

“is not really going to exist at scale, and is not a space that necessarily needs companies like ours.”

Neil Serebryany, at 17:13

Listen · Neil on episode 59, from 17:04
About 30 seconds: Neil on why the security need sits with the companies that use and fine-tune models. The clip stops on its own. Read the full transcript.

Most of the need for security, as he saw it, comes from organizations fine-tuning or using models that already exist.

Three stacked boxes. Top, filled, traditional companies: carmakers, food, agriculture, the rest of the economy. Middle, filled, services built on models: code completion, helper coaches, task-specific tools. Bottom, dashed, core model builders: a few big companies, because it takes a lot of resources. A bracket beside the top two reads where Neil put CalypsoAI. Below, two notes: most of the need for security comes from organizations that fine-tune or use models that already exist. Protecting the foundation models themselves, in Neil's view, wasn't going to exist at scale as a market.
Jon's three layers, and where Neil put CalypsoAI.

Invention and innovation

Neil tied that choice to an old argument about where the money in a new technology goes.

“most of the economic reward of any new technology really comes from innovation associated with that technology, rather than the kind of general invention of the technology in the first place.”

Neil Serebryany, at 17:55

Jon asked him to explain the difference for listeners. Neil cast himself, for a moment, as the inventor of electric light.

“The invention of light in and of itself is incredibly valuable, of course, but the innovations related to that, from actually being able to produce light at scale, to the energy that’s necessary in order to be able to power that”

Neil Serebryany, at 18:33

Listen · Neil on episode 59, from 18:32
About 35 seconds: Neil on why the light bulb's real value came from everything built around it. The clip stops on its own. Read the full transcript.

The history fits. Historians Robert Friedel and Paul Israel list inventors of incandescent lamps who came before Joseph Swan and Thomas Edison, and Edison bought the rights to one earlier patent in 1879 (Wikipedia). What changed daily life was the system around the bulb. Edison’s Pearl Street Station in Manhattan started generating electricity on September 4, 1882, serving 400 lamps for 82 customers, and by 1884 it served 508 customers with 10,164 lamps (Wikipedia).

Two columns. Left, an open box, invention, a lamp that works: historians list inventors of incandescent lamps who came before Joseph Swan and Thomas Edison, and in 1879 Edison bought the rights to one earlier lamp patent. Right, a filled box, innovation, power, wiring and customers: 82 customers and 400 lamps when Pearl Street Station started generating on September 4, 1882, and 508 customers and 10,164 lamps by 1884.
Invention and innovation, by the numbers from Pearl Street.

For AI security, Neil’s version of that lesson is that the value, and the risk, show up where companies put models to work.

The right data, not more data

Sasha asked about data tagging. Companies have an abundance of data and don’t always know which data sets matter for the work AI could do. Neil didn’t think more data was the answer.

“It’s much more of a question of what is the right type of data relative to the example or the use case that you have”

Neil Serebryany, at 20:22

He saw room for data aggregators who can pull a broader set of data for one industry or use case. He also saw an opening, and a warning, for consulting firms working out their place as newer models improve.

“the value of traditional consulting, to some degree, declines”

Neil Serebryany, at 21:02

The scanner wars

Sasha asked where the industry was heading on data protection, from models that leak data to the controls around them. Neil started with where it had been.

“we were really in the, what I would describe as, scanner wars for the last period of time.”

Neil Serebryany, at 22:07

Listen · Neil on episode 59, from 22:07
About 25 seconds: Neil on the scanner wars, when vendors competed on how many detectors they had. The clip stops on its own. Read the full transcript.

The scanners were machine learning models trained to spot one kind of thing: personally identifiable information (PII), payment card data of the kind the PCI DSS standard protects, or prompt injection attacks. Vendors curated data sets, built scanners, and competed over who had more of them. Neil said the problem was twofold. First, it never ended, because there were always more data types, more geographies to cover and more attacks. Second was what he called the language problem.

“Most AI-specific attacks, particularly those that target language, are possible not just in English, but in other languages as well.”

Neil Serebryany, at 23:00

“And everyone’s scanners really were English-centric.”

Neil Serebryany, at 23:09

Listen · Neil on episode 59, from 22:52
About 20 seconds: Neil on the language problem: attacks in every language, scanners built for English. The clip stops on its own. Read the full transcript.

OWASP lists the same weakness among its 2025 prompt injection scenarios, a “Multilingual/Obfuscated Attack” in which an attacker “uses multiple languages or encodes malicious instructions” to get past filters (OWASP). The calculator below shows how fast one detector per type per language adds up.

Left, a grid of detectors: rows for personal data, card numbers, ID numbers and prompt injection, columns for English and other languages. Only the English column is filled. The other columns are dashed, missing. Right, two open boxes: one, it never ended, more data types, geographies and attacks. Two, the language problem, attacks in every language, scanners in English. An arrow leads down to a filled box: one LLM-powered scanner, one request per data type or threat.
The scanner wars, and the two problems Neil saw in them.

The scanner to rule them all

CalypsoAI’s answer was to use a language model as the scanner.

“what we came out with was the first LLM-powered scanner, the scanner to rule them all”

Neil Serebryany, at 23:13

Listen · Neil on episode 59, from 23:13
About 30 seconds: Neil on the multilingual scanner and the Japanese driver's license example. The clip stops on its own. Read the full transcript.

Because a language model reads many languages, one scanner could be pointed at a new data type or threat, in any jurisdiction, with a single request. Neil’s example was a data type outside the usual English-language set.

“covering Japanese driver’s license data types with a single kind of line or request to your model.”

Neil Serebryany, at 23:33

Where was everyone going next? Agents.

“it’s really within the kind of agentic AI space.”

Neil Serebryany, at 23:49

By March 2025 CalypsoAI’s platform had three parts, Inference Red-Team for finding weaknesses with agentic testing, Inference Defend for blocking threats and protecting data in real time, and Inference Observe for visibility and compliance oversight (F5). When F5 announced the acquisition, it said CalypsoAI’s red teaming tested against more than 10,000 new attack prompts each month (F5). Today calypsoai.com leads to F5 AI Guardrails, which F5 says “secures AI models and agents against malicious threats, prompt injection, data leakage” (F5).

Crossing the chasm

Jon asked for the best day of the founder journey. Neil picked the first large-scale production customer.

“we finally felt like we crossed that chasm”

Neil Serebryany, at 24:35

Listen · Neil on episode 59, from 24:31
About 25 seconds: Neil on the day a customer first ran the product in production at scale. The clip stops on its own. Read the full transcript.

In enterprise sales, he said, that day stands on many others.

“by the time you actually make it into a large-scale production release at a major kind of Fortune 500-style company, it’s a day that, by implication, has had many previous days that have needed to go right.”

Neil Serebryany, at 24:59

Jon asked whether he’d recommend the book. Crossing the Chasm is Geoffrey A. Moore’s 1991 book about the adoption gap between early adopters and the mainstream market (Wikipedia). Neil’s answer went to another classic of startup reading.

“Clayton Christensen is one of those authors that pretty much everyone in startup land is probably familiar with.”

Neil Serebryany, at 25:21

Clayton Christensen wrote The Innovator’s Dilemma, first published in 1997 (Wikipedia). Neil’s own recommendation was Technological Revolutions and Financial Capital, Carlota Perez’s 2002 book on how technology revolutions and financial bubbles shape the economy (Wikipedia).

The Defense Department first

Jon asked who that first customer was.

“It was actually the Department of Defense.”

Neil Serebryany, at 29:57

Listen · Neil on episode 59, from 29:56
About 20 seconds: Neil on the Department of Defense as a first customer, and the rigor that came with it. The clip stops on its own. Read the full transcript.

Jon guessed it must have been an uphill battle. Neil talked about what it gave the company instead.

“one of the biggest advantages of working with customers like that is how they put you through your paces”

Neil Serebryany, at 30:07

The company kept that footing. By 2025 it described its platform as trusted by Fortune 500 companies and national security agencies (F5). Palantir, a partner since November 2023, became a customer in June 2024 and built CalypsoAI’s security features into its AI platform (F5).

The contract that didn’t come in

Jon asked the converse question, the most challenging day. Neil went back to a stretch before AI was a topic everyone talked about, when the company was between two changes and counting on one deal.

“we had been expecting this really large contract that was really going to make the company, and it didn’t end up coming in.”

Neil Serebryany, at 30:44

Listen · Neil on episode 59, from 30:42
About 30 seconds: Neil on the large contract the company had pinned its hopes on, and the day it didn't come. The clip stops on its own. Read the full transcript.

Jon asked whether the customer ever said no, or whether the team was dragged through the mud until it had to admit the deal wasn’t happening. “Correct,” Neil said. Sasha said days like that test a founder’s character, and that companies that persist and keep delivering value tend to come through. Jon put it in one line.

“It’s not a failure unless you give up.”

Jon McLachlan, at 31:56

Don’t build for one shiny customer

Sasha asked what was hardest about closing large institutions that care about data, and whether CalypsoAI had to change the product, for example to run on premises. Neil’s answer was a lesson about focus.

“to not orient yourself towards an individual specific customer, no matter how shiny that customer is”

Neil Serebryany, at 32:33

Listen · Neil on episode 59, from 32:33
About 35 seconds: Neil on why one customer's special requests can pull a young company off course. The clip stops on its own. Read the full transcript.

The temptation is real, he said, because a big customer’s money is hard to turn down early on.

“that kind of incremental ARR boost during your perhaps early days looks really appealing and really shiny”

Neil Serebryany, at 32:52

ARR is annual recurring revenue. If that revenue takes the company off course from its broader mission, Neil said, it isn’t worth doing. Sasha framed it as weighing benefit against cost, especially early on, and Jon added that the same goes for investors, who bring their own expectations, and that he’d seen investors out of line with a founder’s vision in a few companies in past lives.

Who buys AI security

Sasha asked what an average CalypsoAI customer looks like and what problem brings them in.

“the average customer for us is a really large institution”

Neil Serebryany, at 33:55

They leaned toward technology, financial services and insurance at the time, though the company sold across many verticals. The buyer usually came from the security side of the organization, and the problem was concrete. A team was deploying AI as a chatbot, an agent or an application.

“we need a system to be able to help secure that deployment.”

Neil Serebryany, at 34:33

Sasha asked whether they came to secure the whole application or the integrity of the model. Neil said it was the exposure, a model put in front of users through an application, an agent or a direct connection, inside or outside the company.

“we need to be able to have visibility and guardrails over the usage of that application or that agent or that kind of access point into the model.”

Neil Serebryany, at 35:17

Left, the buyer: a really large institution, leaning to technology, financial services and insurance, usually from the security side of the organization, and, filled, the first customer, the Department of Defense. Right, three open boxes, a chatbot, an agent and an application, with an arrow down to a filled box: visibility and guardrails over every access point into the model.
Who buys AI security, from the tape.

Four reinsurers

Jon asked whether CalypsoAI worked with cyber insurers, so that customers who reduce their AI risk could get a better rate. Neil said it was an area the company had thought about, and pointed to how concentrated the insurance world is.

“how much of the world’s risk is really reinsured by four companies”

Neil Serebryany, at 36:26

Listen · Neil on episode 59, from 36:22
About 20 seconds: Neil on the four reinsurers whose policies flow down to primary insurers. The clip stops on its own. Read the full transcript.

He named Munich Re, Swiss Re, SCOR and Hannover Re, and said the policies of any one of them flow downstream to the primary carriers that sell insurance to companies. Munich Re is the world’s largest reinsurer and Hannover Re the third-largest reinsurance group, Swiss Re was founded in Zürich in 1863, and SCOR, based in France, is one of the leading reinsurers in the world. That was Neil’s point. When a reinsurer changes how it prices a risk, the change reaches the carriers downstream.

Managers of AI agents

Sasha asked how AI will change culture, society and the way people work day to day. Neil expected the short- to medium-term change to be in how jobs are designed, starting from what AI does well.

“AI systems are really good today at data synthesis”

Neil Serebryany, at 26:46

“we are going to have increased AI system human teaming”

Neil Serebryany, at 26:58

His example was a business analyst who uses several AI agents for parts of the work and supervises how it comes together. Further out, he doubted the usual story about a post-AGI future, and bet that the extra resources AI brings would help people reach Mars on a similar timeline.

“a species that exists on multiple planets, or a multi-planetary species.”

Neil Serebryany, at 29:20

Jon brought it back to the office.

“it sounded almost like everyone with a white-collar job could be promoted to manager. And then what you’re managing is you’re managing your AI minions.”

Jon McLachlan, at 29:31

Beyond token prediction

Jon asked what advice Neil would give his younger self.

“be confident in your own abilities and steadfast in your own convictions.”

Neil Serebryany, at 37:28

Then Sasha asked what tool Neil would build with unlimited time. Neil’s answer started with the limits of today’s models. As the AI safety debates go on, he said, it looks increasingly likely that today’s transformer models won’t be the ones that get there.

“rather than just doing word prediction, you’re going to need models that have the ability to actually interpret the world around them”

Neil Serebryany, at 38:22

Listen · Neil on episode 59, from 38:09
About 25 seconds: Neil on why the next models will need to understand the world, not just predict words. The clip stops on its own. Read the full transcript.

Models like that would open new work, he said. One area is cross-cultural understanding, where psychology research finds that conformist and individualistic societies lead to very different results. Another is security, because a model that understands, rather than predicts, changes what securing it means. A third is the future of work itself.

Sasha saw a chance for AI to repair communication between people and across borders, after years that, in Sasha’s view, had broken a lot of it. Jon pictured a backseat-driver AI that could see the road and say turn left here, watch out for the pedestrian. Sasha closed on trust.

“this is where we as a user of the system have to trust the system that it does the right thing.”

Sasha Sinkevich, at 40:42

What happened after the tape

When we recorded. The conversation was recorded on July 8, 2024, and aired on December 4, 2024. The episode title calls Neil founder and CEO. His LinkedIn shows his time as chief executive ending in August 2024, a month after the recording, and still lists him as CalypsoAI’s founder (LinkedIn). Three weeks after the recording, CalypsoAI announced an integration with IBM’s watsonx.ai (F5).

The laws Neil described. The EU AI Act came into force on August 1, 2024 (Wikipedia). California’s SB 1047 was vetoed on September 29, 2024, and SB 53 became law a year later to the day (California Legislature).

The taxonomy. NIST published a new edition of its adversarial machine learning taxonomy on March 24, 2025, with authors from Cisco, the UK AI Security Institute and the US AI Safety Institute (NIST).

The company. By 2025, CalypsoAI’s chief executive was Donnchadh Casey, it had raised more than $40 million, and it had been a top-two finalist in the RSAC 2025 Innovation Sandbox contest and one of Fast Company’s Most Innovative Companies in AI for 2025 (F5). It signed resellers and partners in South Korea, the UK and Turkey (F5, F5, F5).

F5. On September 11, 2025, F5 announced it would acquire CalypsoAI, “a private company with major operations in Dublin, Ireland,” for $180 million, financed mostly with cash. F5 said the platform brought “real-time threat defense, red teaming at scale, and data security” (F5). At the end of the month, CalypsoAI said it had joined.

CalypsoAI on X, the day it joined F5. View on X.

Today calypsoai.com leads to F5 AI Guardrails, and the company’s LinkedIn page reads “Acquired by F5” (LinkedIn).

Neil. Since January 2025, Neil’s LinkedIn lists him as the founder of Hyperion Horizons Group, and since 2024 as a venture partner at Flex Capital (LinkedIn).

A timeline of seven entries. Open, July 8, 2024, recorded: Neil, Jon and Sasha record the episode. Open, August 2024, founder: Neil's time as chief executive ends. He stays on as founder. Open, September 29, 2024, veto: California's SB 1047 is vetoed. Open, December 4, 2024, episode 59: the episode airs. Filled, March 2025, three parts: Inference Red-Team, Inference Defend and Inference Observe. Filled, September 11, 2025, F5: F5 announces it will acquire CalypsoAI for $180 million. Filled, September 29, 2025, joined: CalypsoAI joins F5. The same day, California's SB 53 becomes law.
What happened after the tape.

The part of the conversation that aged best is the plainest. A company can’t secure AI it can’t see, and it can’t see AI it hasn’t listed, model by model, agent by agent and language by language.

Did you catch it? A six-question quiz

Six questions from the episode. Each answer links the moment in the transcript.

Quiz · six questions

Did you catch it?

Pick an answer for each question, then check your score.

  1. Where did Neil spend time before CalypsoAI, on the problem that led him to AI security?

    1. The National Security Agency
    2. The National Geospatial-Intelligence Agency
    3. A university research lab

    b. "I ended up spending some time at the National Geospatial-Intelligence Agency." Transcript, 2:36.

  2. What did Neil say security for AI is really about?

    1. Risk reduction
    2. Reaching perfect security
    3. Passing an audit

    a. "it's really about risk reduction" Transcript, 3:53.

  3. Where did Neil say AI needs new kinds of protection?

    1. Only at the network edge
    2. Only in employee training
    3. On the model side and on the deployment side

    c. "the protection really needs to come in one of two places." Transcript, 5:11.

  4. What was the language problem with the first AI scanners?

    1. They only worked on source code
    2. They were built for English
    3. They needed a human translator

    b. "And everyone's scanners really were English-centric." Transcript, 23:09.

  5. Who was CalypsoAI's first customer?

    1. A large bank
    2. An insurance company
    3. The Department of Defense

    c. "It was actually the Department of Defense." Transcript, 29:57.

  6. How many companies did Neil say reinsure much of the world's risk?

    1. Four
    2. Ten
    3. Two

    a. "how much of the world's risk is really reinsured by four companies" Transcript, 36:26.

Are your AI deployments guarded?

Eight questions for a company that runs AI in front of its users or its staff, drawn from what Neil, Sasha and Jon covered. Each one links the part of the episode it comes from.

Scorecard · eight questions

Are your AI deployments guarded?

Answer for every model, agent and AI application your company runs today. If two answers fit, pick the lower one.

  1. Can you list every model, agent and AI application your company runs, and who owns each one?

    • No
    • Roughly
    • Yes, with an owner for each

    "you need one place to be able to have visibility across all of that AI usage" See One command footprint.

  2. Do you control what data goes into your models and what comes out?

    • No
    • For some deployments
    • Yes, for every deployment

    "some way to control the kind of data ingress and egress" See Two places to protect.

  3. Do your prompt injection and data checks work in every language your users write in?

    • English only
    • Some languages
    • Every language we serve

    "And everyone's scanners really were English-centric." See The scanner wars.

  4. Do you red team each AI system before it goes into production?

    • Never
    • Once, at launch
    • Before launch and after every major change

    "they have to effectively do kind of safety testing of these models prior to deploying them into production." See The California bill.

  5. Could you swap the model under an application without rebuilding its controls?

    • No
    • With some rework
    • Yes

    "the ability to be able to change out the underlying part of your AI stack that you're using" See One command footprint.

  6. Do you know which AI rules apply in each place you operate?

    • No
    • For our home market
    • Yes, for each jurisdiction

    "different sets of restrictions based on high risk, medium risk, low risk systems." See The EU AI Act, and telling people it's AI.

  7. Do people know when they're talking to an AI system?

    • No
    • Sometimes
    • Always, it's labeled

    "one of the requirements is to disclose the fact that the user is communicating with the system that is powered by AI." See The EU AI Act, and telling people it's AI.

  8. Does your security team own the security of your AI deployments?

    • Nobody does
    • It's shared, and unclear
    • Yes, with a named owner

    "They're often someone that has or comes from the security part of the organization." See Who buys AI security.

Exposed

Your AI is running without much watching it. List every model, agent and AI application with an owner, then put a check on the data going in and out of the busiest one.

Partly guarded

Some deployments are covered and some aren't. Test in every language your users write in, red team before launch, and map the rules where you operate.

Guarded

You can see and steer your AI use. Keep it that way as models change, retest after every major change, and keep telling people when they're talking to AI.

How many scanners would you need?

How fast detection work multiplies when every data type and every attack needs its own detector in every language, next to the number of instructions one multilingual scanner would need. Change the numbers to your own.

Calculator

How many scanners would you need?

Four estimates: how many data types you need to catch, how many attack types you need to block, how many languages your users write in, and the hours a year it takes to keep one detector current.

–detectors if each type needs one per language
–hours a year to keep them all current
–instructions for one multilingual scanner
–full-time people on upkeep alone

One detector per type per language means 90 detectors and 3,600 h of upkeep every year, about 1.8 full-time people. Written once as instructions to a multilingual scanner, the same coverage is 15 instructions.

This is the arithmetic behind the two problems Neil described in The scanner wars, not a benchmark, and the defaults are examples rather than measurements, so put in your own counts. CalypsoAI, now part of F5, sold the single-scanner approach. Whichever way you go, test each language you rely on before you trust a scanner with it.

From Pearl Street to F5 AI Guardrails

Everything on this page sits on one timeline, from Edison’s first power plant to CalypsoAI’s place inside F5. Filter it by thread.

Timeline · 1879 to 2026

From Pearl Street to F5 AI Guardrails

Filter by thread. Dates are from the public record except where marked as part of this show.

  1. A lamp patent

    Edison buys the rights to an earlier incandescent lamp patent (Wikipedia, on this show).

  2. Pearl Street

    Edison's first commercial power plant starts generating, with 400 lamps for 82 customers (Wikipedia, on this show).

  3. Crossing the Chasm

    Geoffrey A. Moore's book on the gap between early adopters and the mainstream (Wikipedia, on this show).

  4. NIMA

    The National Imagery and Mapping Agency is founded, renamed the National Geospatial-Intelligence Agency in 2003 (Wikipedia, on this show).

  5. The Innovator's Dilemma

    Clayton Christensen's book on how new technologies cause great firms to fail (Wikipedia, on this show).

  6. Technological revolutions

    Carlota Perez's book on technology waves and financial bubbles, Neil's pick (Wikipedia, on this show).

  7. Defense innovation

    Neil works in innovation at the Department of Defense in Virginia (LinkedIn, on this show).

  8. CalypsoAI

    Neil founds the company and leads it as chief executive (LinkedIn).

  9. Palantir partnership

    The partnership with Palantir begins (F5).

  10. NIST's taxonomy

    NIST publishes its taxonomy of adversarial machine learning attacks, poisoning included (NIST, on this show).

  11. SB 1047

    California's frontier AI bill is introduced (California Legislature, on this show).

  12. The AI Act passes

    The European Parliament adopts the AI Act (Wikipedia, on this show).

  13. One day, two votes

    SB 1047 passes California's Senate 32 to 1, and the EU Council approves the AI Act (California Legislature, Wikipedia).

  14. Palantir

    Palantir becomes a customer and builds CalypsoAI's security features into its AI platform (F5).

  15. Recorded

    Neil, Jon and Sasha record the episode (on this show).

  16. IBM watsonx

    CalypsoAI announces an integration with IBM's watsonx.ai (F5).

  17. In force

    The EU AI Act enters into force, with its rules phasing in over 6 to 36 months (Wikipedia).

  18. Founder

    Neil's time as chief executive ends, and he stays on as founder (LinkedIn).

  19. Veto

    Governor Gavin Newsom vetoes SB 1047 (California Legislature, on this show).

  20. Episode 59

    The episode airs (transcript).

  21. Hyperion Horizons

    Neil founds Hyperion Horizons Group (LinkedIn).

  22. Red-Team, Defend, Observe

    CalypsoAI's platform now has three parts, sold in South Korea through CloudShift (F5, on this show).

  23. NIST updates

    A new edition of the adversarial machine learning taxonomy (NIST).

  24. RSAC 2025

    CalypsoAI wraps a week at the conference where it was a top-two finalist in the Innovation Sandbox (X, F5).

  25. F5

    F5 announces it will acquire CalypsoAI for $180 million (F5).

  26. Joined F5

    CalypsoAI says it has officially joined F5 (X).

  27. SB 53

    California's frontier AI transparency law is approved, a year to the day after the veto (California Legislature, on this show).

  28. F5 AI Guardrails

    calypsoai.com leads to F5's AI Guardrails product (F5).

What to do this week

Five things, in the order Neil’s argument suggests.

  1. List every model, agent and AI application you run. Give each one an owner and note which data it touches. The scorecard above shows where else you stand.
  2. Put a check on the data going in and out. Start with the deployment that handles your most sensitive data, and keep a record of what it sees.
  3. Test in every language your users write in. Prompt injection and data checks that only work in English miss everything else. Run the calculator to see how fast one-detector-per-language coverage grows.
  4. Red team before launch, and again after every major change. Keep the report, and write down how many attempts and which techniques it covered.
  5. Map the rules where you operate, and tell people when they’re talking to AI. The EU AI Act’s transparency duty is the easiest one to meet. If you’d like help testing your AI product, our AI red teaming team can help, and you can book 15 minutes with us.

Key takeaways

  1. Assume someone will try to disrupt your AI

    Neil's path into security started at the National Geospatial-Intelligence Agency, which needed AI to read the world's data. Any technology you depend on, he said, is one someone else will try to disrupt.

  2. Secure AI is risk reduction

    No system is perfectly secure. For Neil, secure AI means controls, and the technology to monitor and control AI-specific risks, on top of the security every system already needs.

  3. Protect the model and the deployment

    On the model side the threats are data poisoning and tampering with training. On the deployment side it's many models, applications and agents, and the data moving in and out of them.

  4. You already live under AI rules

    Privacy laws such as GDPR and California's already govern the data AI runs on. Neil expected new US AI laws to arrive state by state before any federal law.

  5. California's bill was aimed at the builders

    The California act Neil described asked foundation model developers for safety testing before production, a way to shut a model down and whistleblower protections. Governor Newsom vetoed SB 1047 that September.

  6. Tell people when they're talking to AI

    Sasha pointed to the EU AI Act's transparency rule, that users should know when the system they're using is powered by AI.

  7. Keep one place to see all of your AI

    Companies won't know which models and agents they'll use next, so they need one place to see all of it, swap the model underneath, control the data and block attacks such as prompt injection.

  8. Productivity is the prize

    Neil's case for AI is economic. Wealth has grown with labor productivity, AI can raise it, and success for CalypsoAI meant as much secure AI adoption as possible.

  9. Adoption is a process problem first

    The hardest part of adopting AI isn't technical. It's redesigning jobs and processes around systems that only do part of a job.

  10. The security need sits with the users of models

    Neil expected the security market to be in companies that fine-tune or use existing models, not in protecting the foundation models themselves.

  11. Innovation pays more than invention

    In Neil's light bulb example, the invention mattered, but producing light at scale, powering it and changing how people live produced most of the economic benefit.

  12. The right data beats more data

    More data doesn't help an average enterprise much. The right data for the use case does, which opens room for data aggregators.

  13. Scanners can't be English-only

    In the scanner wars, vendors built a detector per data type or attack. The list never ended, and the detectors were English-centric while attacks work in any language.

  14. One multilingual scanner

    CalypsoAI's answer was an LLM-powered scanner that could cover a new data type, such as Japanese driver's licenses, with a single request.

  15. Don't build for one shiny customer

    Early revenue from one customer's unique requests can pull a young company off its mission, and then it isn't worth doing.

  16. Build for understanding, not just prediction

    Neil expected future models to interpret the world rather than predict words, opening work in cross-cultural understanding, in security and in the future of work.

Chapters

Tap a chapter to play from there.

Pull quotes

“for me, my security journey actually started to some degree incidentally.”

Neil Serebryany ·

“I was fascinated more so by a specific problem that I wanted to solve than I was by the kind of industry at large.”

Neil Serebryany ·

“And they had this mission to see and understand the world.”

Neil Serebryany ·

“they had no way to be able to analyze it at scale without leveraging AI.”

Neil Serebryany ·

“if you're using a technology, you have to assume that someone else is trying to figure out how to disrupt your use of that technology.”

Neil Serebryany ·

“How do I leverage this technology in a secure way where I understand what my risks are?”

Neil Serebryany ·

“Security is fundamental to building great businesses and great systems and amazing user experiences.”

Jon McLachlan ·

“Just like everything else in security, it's really about risk reduction”

Neil Serebryany ·

“it's really just having a system of controls and potentially technology in place to enable you to better monitor and control for AI-specific risks.”

Neil Serebryany ·

“the security in the AI is not different from the core concepts of the security as we know them in the existing systems.”

Sasha Sinkevich ·

“the protection really needs to come in one of two places.”

Neil Serebryany ·

“you need some way to be able to have visibility across that entire kind of potential attack surface”

Neil Serebryany ·

“you already have your kind of existing regulatory footprint”

Neil Serebryany ·

“In the US, it's likely that we're going to be legislating in the same way as we have for privacy, on a state-by-state level, before we do anything on a federal level.”

Neil Serebryany ·

“In Europe, you have the new kind of EU AI Act, and you have different sets of restrictions based on high risk, medium risk, low risk systems.”

Neil Serebryany ·

“one of the requirements is to disclose the fact that the user is communicating with the system that is powered by AI.”

Sasha Sinkevich ·

“they have to effectively do kind of safety testing of these models prior to deploying them into production.”

Neil Serebryany ·

“They have to have the ability to shut down their AI system, and they have to effectively have whistleblower protections in place for these foundation model companies.”

Neil Serebryany ·

“We allow you to prepare for this AI future.”

Neil Serebryany ·

“you need one place to be able to have visibility across all of that AI usage”

Neil Serebryany ·

“And so we give you that command place, or that command footprint, to be able to understand what you're doing across your AI usage, to be able to govern and secure it.”

Neil Serebryany ·

“AI is really important to the world.”

Neil Serebryany ·

“it's really been based on labor productivity, much more so than like the determinants of land.”

Neil Serebryany ·

“success for us is really enabling as much AI adoption as possible”

Neil Serebryany ·

“the non-technical answer is really process change inside of this organization.”

Neil Serebryany ·

“If you really want to see the full benefit of AI, and most organizations are not there today”

Neil Serebryany ·

“They all tend to be big companies, because it takes a lot of resources to build them.”

Jon McLachlan ·

“And there's little connective tissue between those three layers, right?”

Jon McLachlan ·

“we're really focused on organizations that are leveraging and adopting AI.”

Neil Serebryany ·

“most of the economic reward of any new technology really comes from innovation associated with that technology, rather than the kind of general invention of the technology in the first place.”

Neil Serebryany ·

“And I have helped man see at night beyond candles.”

Neil Serebryany ·

“The invention of light in and of itself is incredibly valuable, of course”

Neil Serebryany ·

“The data is what powers modern businesses.”

Sasha Sinkevich ·

“One of the biggest pain points that we see in the industry is abundance of data.”

Sasha Sinkevich ·

“It's much more of a question of what is the right type of data relative to the example or the use case that you have”

Neil Serebryany ·

“the value of traditional consulting, to some degree, declines”

Neil Serebryany ·

“we were really in the, what I would describe as, scanner wars for the last period of time.”

Neil Serebryany ·

“The problem there was twofold.”

Neil Serebryany ·

“One, it was a never-ending problem”

Neil Serebryany ·

“Most organizations operate in multiple languages.”

Neil Serebryany ·

“And everyone's scanners really were English-centric.”

Neil Serebryany ·

“what we came out with was the first LLM-powered scanner, the scanner to rule them all”

Neil Serebryany ·

“covering Japanese driver's license data types with a single kind of line or request to your model.”

Neil Serebryany ·

“it's really within the kind of agentic AI space.”

Neil Serebryany ·

“we finally felt like we crossed that chasm”

Neil Serebryany ·

“Clayton Christensen is one of those authors that pretty much everyone in startup land is probably familiar with.”

Neil Serebryany ·

“AI systems are really good today at data synthesis”

Neil Serebryany ·

“we are going to have increased AI system human teaming”

Neil Serebryany ·

“Resistance is futile, like the Borg, if that's what you mean, Sasha.”

Jon McLachlan ·

“a species that exists on multiple planets, or a multi-planetary species.”

Neil Serebryany ·

“it sounded almost like everyone with a white-collar job could be promoted to manager.”

Jon McLachlan ·

“It was actually the Department of Defense.”

Neil Serebryany ·

“one of the biggest advantages of working with customers like that is how they put you through your paces”

Neil Serebryany ·

“we had been expecting this really large contract that was really going to make the company, and it didn't end up coming in.”

Neil Serebryany ·

“It's not a failure unless you give up.”

Jon McLachlan ·

“to not orient yourself towards an individual specific customer, no matter how shiny that customer is”

Neil Serebryany ·

“we always have to weigh in the benefit versus cost of doing certain things, especially early on.”

Sasha Sinkevich ·

“the average customer for us is a really large institution”

Neil Serebryany ·

“we need to be able to have visibility and guardrails over the usage of that application or that agent or that kind of access point into the model.”

Neil Serebryany ·

“how much of the world's risk is really reinsured by four companies”

Neil Serebryany ·

“be confident in your own abilities and steadfast in your own convictions.”

Neil Serebryany ·

“rather than just doing word prediction, you're going to need models that have the ability to actually interpret the world around them”

Neil Serebryany ·

“a backseat driver AI version that could see the real world”

Jon McLachlan ·

“this is where we as a user of the system have to trust the system that it does the right thing.”

Sasha Sinkevich ·

About the guest

Neil Serebryany, Founder and former Chief Executive Officer, CalypsoAI

Neil Serebryany founded CalypsoAI in September 2018 and led it as founder and chief executive until August 2024. CalypsoAI secured the way companies use AI models, at what it called the inference layer, and counted the Department of Defense as its first customer. F5 announced in September 2025 that it would acquire the company, whose product is now F5 AI Guardrails. Neil studied cognitive science at the University of Southern California, and since January 2025 has led Hyperion Horizons Group.

About the host

Jon McLachlan and Sasha Sinkevich are co-founders of YSecurity, the on-demand cybersecurity team for startups, and of Cyberbase.ai. The Security Podcast of Silicon Valley is hosted by Jon McLachlan and Sasha Sinkevich. Jon McLachlan on LinkedIn ↗Sasha Sinkevich on LinkedIn ↗

Context and sources

  • Neil Serebryany's LinkedIn experience: founder of CalypsoAI since September 2018, founder and chief executive from September 2018 to August 2024, an innovation role at the Department of Defense in Virginia in 2018, a venture partner at Flex Capital since 2024, and founder of Hyperion Horizons Group since January 2025. Source ↗
  • Neil Serebryany's LinkedIn education: cognitive science at the University of Southern California. Source ↗
  • CalypsoAI on LinkedIn: "Acquired by F5," founded in Silicon Valley in 2018, backed by Paladin Capital Group, Lockheed Martin Ventures, Lightspeed Venture Partners, 8VC, Hakluyt Capital and Empros Capital, with $38.2 million raised. Source ↗
  • F5, F5 to acquire CalypsoAI to bring advanced AI guardrails to large enterprises, September 11, 2025: $180 million, mostly in cash, for a company with major operations in Dublin. Donnchadh Casey as chief executive, more than $40 million in venture funding, a top-two finalist in the RSAC 2025 Innovation Sandbox, and red teaming against more than 10,000 new attack prompts each month. Source ↗
  • CalypsoAI on X, September 29, 2025: "We have officially joined @F5." Source ↗
  • F5 AI Guardrails, the product page calypsoai.com now leads to: protection for AI models and agents against threats, prompt injection, data leakage and harmful outputs. Source ↗
  • CalypsoAI welcomes Palantir as a valued customer, June 19, 2024: a partnership established in November 2023, with CalypsoAI's security features integrated into Palantir's AI platform. Source ↗
  • Partnering for cybersecurity excellence: IBM watsonx and CalypsoAI, July 29, 2024. Source ↗
  • CalypsoAI announces partnership with CloudShift to expand AI security in South Korea, March 3, 2025: the platform as Inference Red-Team, Inference Defend and Inference Observe, trusted by Fortune 500 companies and national security agencies. Source ↗
  • CalypsoAI and OnSecurity partner to bring AI red-teaming to the UK penetration testing market, May 23, 2025. Source ↗
  • CalypsoAI partners with DETECH to expand AI security across Turkey, July 31, 2025. Source ↗
  • CalypsoAI on X, May 2, 2025, after RSAC 2025 and the Innovation Sandbox. Source ↗
  • California Legislature, SB 1047 bill history: introduced February 7, 2024, passed the Senate 32 to 1 on May 21, passed the Assembly 48 to 16 on August 28, and vetoed by the governor on September 29, 2024. Source ↗
  • California Legislature, SB 53 bill history: approved by the governor on September 29, 2025, Chapter 138, Statutes of 2025. Source ↗
  • Wikipedia, Safe and Secure Innovation for Frontier Artificial Intelligence Models Act: models costing more than $100 million to train, any AI company doing business in California, risk assessments before release and whistleblower protections. Source ↗
  • Wikipedia, Transparency in Frontier Artificial Intelligence Act: introduced by Senator Scott Wiener in January 2025, aimed mainly at the largest developers, with whistleblower protections and critical safety incident reporting. Source ↗
  • Wikipedia, Artificial Intelligence Act: passed the European Parliament on March 13, 2024, approved by the EU Council on May 21, 2024, in force from August 1, 2024, with risk tiers and a phase-in of 6 to 36 months. Source ↗
  • NIST AI 100-2 E2023, Adversarial Machine Learning: A Taxonomy and Terminology of Attacks and Mitigations, January 2024. Source ↗
  • NIST AI 100-2 E2025, the updated edition, March 24, 2025. Source ↗
  • OWASP Gen AI Security Project, LLM01:2025 Prompt Injection, including the multilingual and obfuscated attack scenario. Source ↗
  • Wikipedia, National Geospatial-Intelligence Agency: a combat support agency in the Department of Defense, founded in 1996 as the National Imagery and Mapping Agency and renamed in 2003. Source ↗
  • Wikipedia, Pearl Street Station: generating from September 4, 1882, with 400 lamps for 82 customers, and 508 customers with 10,164 lamps by 1884. Source ↗
  • Wikipedia, Crossing the Chasm: Geoffrey A. Moore's 1991 book on the gap between early adopters and the mainstream. Source ↗
  • Wikipedia, Technological Revolutions and Financial Capital: Carlota Perez's 2002 book on technology revolutions and financial bubbles. Source ↗
  • US Bureau of Labor Statistics, productivity program, the official US labor productivity measures. Source ↗

Transcript

Automatic transcription. Jon McLachlan and Sasha Sinkevich host this episode with Neil Serebryany. There is no diarization on the tape, so speaker labels were assigned from the content and checked passage by passage against reference recordings of each voice from this episode, and a few short lines may sit with the wrong speaker. Names and product names were normalized where the recognizer misheard them (Jon McLachlan, Sasha Sinkevich, Neil Serebryany, Calypso and CalypsoAI, Mistral, ChatGPT, Claude, Carlota Perez's first name, SCOR, Hannover Re), as were a few terms the recognizer misheard (prompt injection, red teaming, scanner wars, agentic, post-Malthusian, pain point). Words in [brackets] are best guesses where the audio is unclear, and the few stretches no decode makes out are marked with an ellipsis. Answers are transcribed as spoken, with repeated words and false starts trimmed. Short backchannels are left out.

Read the full transcript 6,245 words

Jon McLachlan

Hello, everyone, and welcome to another episode of The Security Podcast in Silicon Valley. I am your co-host, Jon McLachlan, and I am joined with co-host Sasha Sinkevich. Today, we have an amazing guest, Neil Serebryany, the founder. Did I say that correctly?

Neil Serebryany

No, you got that perfectly.

Jon McLachlan

See, there's an example of something that we'll cut right up. He is the founder and CEO of Calypso, an amazing startup that helps protect and tackle a lot of the new, interesting problems around AI and AI systems. Welcome to the show, Neil.

Neil Serebryany

[And] thanks so much for having me, Jon and Sasha. Look forward to the conversation. Look forward to any areas of agreement, but perhaps more interestingly, any areas of disagreement that we end up finding and having the ability to discuss.

Jon McLachlan

Well, this will be a great show, then. I can tell right away. That's the perfect way to open it up. Yep. Them are fighting words.

Neil Serebryany

I'm not sure I'd go that far. I think these are words that are indicative of the moment and time that we're in, the moment and time being very unclear in terms of what the future holds.

Jon McLachlan

It's very murky out there. It's very murky. You have to be a little bit crazy to get into security. I was a little bit, you know, I see all of these difficult problems, I just jump right in, make, build a career around the whole thing. But what's your story? How did you get into security?

Neil Serebryany

Yeah, that's a great question. So for me, my security journey actually started to some degree incidentally. And when I say incidentally, what I really mean is that I was fascinated more so by a specific problem that I wanted to solve than I was by the kind of industry at large. I had always been interested in AI, and I've been interested in the impact that effectively mimicking the human brain would be able to have on society, for the very, very simple reason that if we are mimicking the human brain and we have the ability to do so using GPUs, we then have the ability to increase the capacity to use over and over and over again, meaning that our ability to create artificial versions of the human brain, or technologies that are better than the human brain, are potentially infinite, whereas the potential of a human brain to some degree is fixed. And through that kind of journey of being fascinated by AI, I ended up spending some time at the National Geospatial-Intelligence Agency. And they had this mission to see and understand the world. And as part of seeing and understanding the world, they had way too much data. As you can probably guess, the entire world produces an enormous amount of data, and they had no way to be able to analyze it at scale without leveraging AI. And then, in that kind of context, if you're using a technology, you have to assume that someone else is trying to figure out how to disrupt your use of that technology. And that's where you get into kind of the security side of the house. How do I leverage this technology in a secure way where I understand what my risks are?

Jon McLachlan

Yeah. So, what does secure AI mean? Like, what it's like, this is such a new space. This is a new technology. Security is fundamental to building great businesses and great systems and amazing user experiences. Everyone brings a different idea, I think, maybe to the table. How do you see it?

Neil Serebryany

I think holistically we should start with the fact that it's impossible to ever have, you know, one hundred percent secure kind of systems. Just like everything else in security, it's really about risk reduction, much more so than it is about ever being able to reach this perfect … So the question becomes, what does security for AI or secure AI mean? And really, at the kind of most simplistic or basic level, before we get into the specific subsectors, before we get into the data, training or deployment side of the house, it's really just having a system of controls and potentially technology in place to enable you to better monitor and control for AI-specific risks.

Sasha Sinkevich

So in a sense, the security in the AI is not different from the core concepts of the security as we know them in the existing systems. You still have to protect the infrastructure, which hosts the services that provide AI services. We still have to protect the data. What do you see as the new pillar in the context of artificial intelligence and security? Is there some new function that we need to protect more closely than we have in the past?

Neil Serebryany

Yeah, it's a really good question. So, on the new function side of the house, the protection really needs to come in one of two places. One is on the underlying model side of the house, where you need a different set of techniques in order to be able to protect against people poisoning your data, or data poisoning kind of related attacks, and you need to be able to protect against effectively folks messing with your training or kind of retraining side of your house for models. And then on the deployment side of the house, I think it's really bringing together a lot of technologies and systems that already exist into this new kind of context. And this new context is one where you're likely going to have multiple models, multiple applications, multiple kinds of agents that you're working with in the context of your kind of global AI footprint. And you need some way to be able to have visibility across that entire kind of potential attack surface, some way to control the kind of data ingress and egress, and some way to be able to ultimately enable the compliance side of the house that's going to become an increasingly kind of large part of the AI surface.

Sasha Sinkevich

So it's very interesting that we came to a very natural next question, which is, AI is essentially based on processing large volumes of data, and there are certain regulations that are evolving based on the developments in the AI space. Are there any specific regulations that we should all watch out for in the AI space? What do you see?

Neil Serebryany

Yeah, I mean, you already have your kind of existing regulatory footprint, and where I say existing regulatory footprint, I'm really referring to your data privacy regulations, GDPR inside of Europe, the California Consumer Protection Act inside of California, the various sets of regulations you have in Canada and Japan around data privacy and what you're doing with sensitive information. And then you have all of this new legislation that is coming to the forefront. In the US, it's likely that we're going to be legislating in the same way as we have for privacy, on a state-by-state level, before we do anything on a federal level. And so there is a new act in California that is going to potentially affect model developers, but also those that end up using models as part of the work that they do. In Europe, you have the new kind of EU AI Act, and you have different sets of restrictions based on high risk, medium risk, low risk systems. And we're also seeing legislation, as well as this broader concept of AI nationalism, in Japan, Canada, the UK, India, and certainly China as well.

Sasha Sinkevich

Yeah, as far as I know, the EU Act, one of the requirements is to disclose the fact that the user is communicating with the system that is powered by AI. This is just one of the examples to make sure that users are not misled into the understanding of what is providing the service behind the scenes, so to say. You mentioned a new act in California. Can you give us a little bit more information about what it is and how it will impact companies that operate and do business in California?

Neil Serebryany

Yeah, 100. And so I think it's helpful as we also separate out those that are building, let's call them foundation models, because that's the kind of art that everyone's been using, for Mistral or OpenAI's ChatGPT or on Anthropic's Claude, versus those that are fine-tuning or leveraging models. For those folks that are actually building these foundation models, they have to effectively do kind of safety testing of these models prior to deploying them into production. So effectively, AI red teaming, if you want to think of it like that. And then they have to put in place various compliance measurements. They have to have the ability to shut down their AI system, and they have to effectively have whistleblower protections in place for these foundation model companies. When you're on the use side of the house, you sort of get into a similar structure as the EU AI Act in terms of the risk associated with the AI application. And you have a different set of regulatory requirements for higher risk versus lower risk [applications] of AI.

Jon McLachlan

So help us and our listeners understand, how does Calypso fit into this picture? What is the key [insight]? How, what do you guys do that's better than everyone else in the world?

Neil Serebryany

Really good question. So what we do is really simple. We allow you to prepare for this AI future. You don't necessarily know what model you're going to be using moving forward, what set of agents you're going to be using moving forward, just how much sprawl you're going to have across your AI infrastructure, particularly as you operate in multiple jurisdictions, and you need one place to be able to have visibility across all of that AI usage, as well as the ability to be able to change out the underlying part of your AI stack that you're using, one place to be able to control against specific sets of data flowing into your models or out of your models, as well as be able to protect against things like prompt injection attacks or other AI-specific attacks. And so we give you that command place, or that command footprint, to be able to understand what you're doing across your AI usage, to be able to govern and secure it.

Jon McLachlan

That sounds like a really challenging problem. Very grateful that there are smart people working on this new space. And when you fast forward into the future, and you look at CalypsoAI in that future, I'll let you decide how far into the future we'd like to go, what does that future look like in terms of success for CalypsoAI?

Neil Serebryany

Yeah. So fundamentally, I think that AI is really important to the world. And the reason why is a couple fold. One, if you actually look at labor productivity has really stagnated, at least in the US, over the last couple of decades. It's actually been declining in the EU in the kind of post-COVID era. And if you want to think about global wealth or global GDP in the kind of post-Malthusian era, it's really been based on labor productivity, much more so than like the determinants of land. And AI is a technology that has the potential to be able to increase productivity, which over a long enough time horizon should increase global wealth or global … And as part of that, we really want to enable that feature. We want to enable folks to be able to leverage any AI vendor, any AI model, any AI system or [system of systems] across everything that they're doing, and to be able to have control over that. And so success for us is really enabling as much AI adoption as possible for organizations, and being able to give them that confidence that while they're leveraging this new kind of technology, they're doing so in a way that is secure.

Sasha Sinkevich

What do you see as the biggest pain point for a modern organization that is looking to boost productivity with the help of AI? And I know my question is very generic, because it implies that we take an average company, which doesn't really exist. Different companies provide different functions. But based on your experience, what do you see as the biggest pain point for a company that is trying to adopt AI technology?

Neil Serebryany

Yeah, super good question. I'll give you the non-technical answer and then the technical answer. So the non-technical answer is really process change inside of this organization. If you really want to see the full benefit of AI, and most organizations are not there today, you need to be able to think about what do jobs look like inside of your organization? What do processes look like inside of your organization? And you need to be able to adopt for a future where AI systems are only able to do a specific or certain part of a broader kind of job, or broader jobs-to-be-done kind of context. On the technical side of the house, I think it's being really clear in terms of what are those use cases that you want to actually start adopting AI for. And then, as we're seeing significant amounts of change within AI, having the ability to quickly respond and react to these changes and potentially be able to change or modernize the infrastructure that you're building upon. And that's one of the key value propositions that we offer for organizations that we work with.

Jon McLachlan

Double-click on your go-to-market strategy a little bit, and help our listeners understand what this ecosystem is shaping up as. You mentioned those core models in the beginning. So these are where our large language models are coming from. There's a lot of companies working on them. They all tend to be big companies, because it takes a lot of resources to build them. And then I see, I'd be interested to hear your opinion on this, I see like a middle layer where there's services being built on top of those large language models, things like code completion services, little helper coaches. These tend to be more task-specific companies, and entire companies are being spun up in sort of this middle vertical. And then we have, in the B2B space anyway, we have companies, traditional companies, Toyota, …, you know, food companies, agricultural companies, whatever. This is the rest of the economy, like not in the AI space. And there's little connective tissue between those three layers, right? That middle layer of service-providing companies that are starting to pop up are using some large core or a service like OpenAI or Anthropic or whatever. And then they're providing services out to all of our traditional economies, all of the traditional companies that are consuming the benefits and augmenting their staff. CalypsoAI, which does it fit in both of those parts of connective tissue? Or do you primarily see traction coming in from non-AI companies trying to protect their use of specialized use of AI? Or how does that discussion look like here?

Neil Serebryany

Yeah, we're really focused on organizations that are leveraging and adopting AI. So we do help protect quite a few applications that use or leverage AI. But we think that over time, the space of protecting foundation models is a space that is going, is not really going to exist at scale, and is not a space that necessarily needs companies like ours. We think that most of the innovation, as well as most of the actual need for security, is really going to come from organizations that are effectively, you can call it fine-tuning or leveraging, these models that already exist. So in your parlance, the kind of latter two side of the house. And I also think about this within the context of kind of the innovation, invention dilemma. Now we're skirting the lines a little bit between innovation and invention, but as a general rule of thumb, most of the kind of economic progress, most of the economic reward of any new technology really comes from innovation associated with that technology, rather than the kind of general invention of the technology in the first place.

Jon McLachlan

Do you want to explain to our listeners what, I understand and I agree 100%, but what is the difference between innovation and invention?

Neil Serebryany

Really valuable. I am Thomas Jefferson, because we're going to go historical here for a second. And I have helped man see at night beyond candles. I've helped invent light. The invention of light in and of itself is incredibly valuable, of course, but the innovations related to that, from actually being able to produce light at scale, to the energy that's necessary in order to be able to power that, to even all of the industries and changes in kind of the way that people live their lives, generated a lot more of the economic benefit, or light's benefit, associated with light than the actual invention of kind of artificial light in and of itself.

Sasha Sinkevich

That's perfect example. What is innovation versus invention? We touched on the most important component of most organizations is data. The data is what powers modern businesses. CalypsoAI is built to ensure that the data is well protected in the new space of artificial intelligence functionalities. Is there an interesting use case for data tagging that Calypso is helping with? And I'll explain what I'm actually trying to ask. One of the biggest pain points that we see in the industry is abundance of data. However, we don't always know which data sets are important for specific functions that could be augmented by artificial intelligence. How do you see this problem, and what do you see the solution to this problem?

Neil Serebryany

Yeah, super good question. I don't necessarily think that, as you said, more data is likely to lead to any sort of super positive result or outcome for the average enterprise. It's much more of a question of what is the right type of data relative to the example or the use case that you have, and how do you augment that data within the context of a specific industry or within the context of a specific use case? And so I think that's where you create that kind of natural space for data aggregators who exist, who have that ability to take a broader subset of data within a specific use case or industry context. And that's also the opportunity space for a lot of the consulting firms who are really thinking about what is their play within the kind of AI future or AI space that we are now in. And the value of traditional consulting, to some degree, declines in the context of new kind of newer AI models progressing themselves forward.

Sasha Sinkevich

When you talk to the potential prospects, and when you talk to existing customers, I'm sure you have ongoing conversations about what the next big feature that Calypso will build. And I'm very cautious, and I acknowledge the fact that you will not be able to disclose the future roadmap of Calypso. But based on your experience, where do you see the industry is moving towards in the context of data and data protection, and ensuring that models are not leaking data, and models themselves and the infrastructure around models have all of the proper security controls to ensure the safety and protection of the data?

Neil Serebryany

Yeah, a hundred percent. So I'll just start with where we were as an industry and where we're going. From a where we were perspective, we were really in the, what I would describe as, scanner wars for the last period of time. And what the scanner wars were, everyone effectively building machine learning models to detect PII, or to detect PCI, or to be able to detect prompt injection attacks, and basically building more and more scanners, curating data sets, building scanners, curating data sets, building scanners, and then competing over who had more scanners. The problem there was twofold. One, it was a never-ending problem, because you had more data types constantly, you had more geographies that people wanted to be able to account for, and you constantly had more and more attacks that needed to be protected against. And then, problem number two associated with that was, simply put, the language problem. Most organizations operate in multiple languages. Most AI-specific attacks, particularly those that target language, are possible not just in English, but in other languages as well. And everyone's scanners really were English-centric. And so what we came out with was the first LLM-powered scanner, the scanner to rule them all, that would enable you to be able to operate multilingual, that would be able to allow you to protect against specific types of data or specific threats, no matter the jurisdiction. So, as a simple example, you know, covering Japanese driver's license data types with a single kind of line or request to your model. And so that's the kind of most recent advance that we had. Where everyone is going, you know, this is not really going to be a surprise for folks, but it's really within the kind of agentic AI space. It's sort of the next big thing for the kind of AI industry within the context of maximizing productivity or productive use cases.

Sasha Sinkevich

Fantastic. And thank you for that very well-structured and deep response to my question.

Jon McLachlan

Being a founder is lots of interesting moments. And I wonder, as you look back on your days with Calypso, if you might be so bold to pick out a day or maybe an event that happened that you could really point at and say, yeah, this is absolutely one of the best days that we've had at Calypso. You think back on your entrepreneurial journey.

Neil Serebryany

Yeah, I think it's probably when we had our first large-scale production customer, and we finally felt like we crossed that chasm between, you know, here's something that we're envisioning, here's something that we're building, and here's something that someone is actually using at scale and benefiting from. And I think that being the biggest day in this context is really something that's true for companies that are focused on the enterprise. I think within the kind of context of enterprise selling, by the time you actually make it into a large-scale production release at a major kind of Fortune 500-style company, it's a day that, by implication, has had many previous days that have needed to go right.

Jon McLachlan

No, that's incredible. And you mentioned Crossing the Chasm. Would you recommend that book to the listeners?

Neil Serebryany

You know, I feel like Clayton Christensen is one of those authors that pretty much everyone in startup land is probably familiar with. So I feel like it's less of a recommendation and more of just one of those kind of required readings for everyone in the kind of AI space. If you're asking for a book that I would recommend, probably something like, I don't know, Technological Revolutions and Financial Capital, who's written by a woman called Carlota, would be a recommendation. And she effectively writes about how technology has shaped our modern society, and the impact of kind of individual technology advances on a macro basis within the context of global wealth, global determinism, and kind of company building to some degree.

Sasha Sinkevich

Very nice, very nice. I have a question to follow up on the previous statement. Given what we know about AI and where AI might be in the near future, how do you see it will change the culture, the society and the way that we as humans approach day-to-day tasks and how we operate day to day?

Neil Serebryany

I think it's going to redesign what, kind of, how jobs are optimized for in the short to medium term. So I think that what we're finding is that AI systems are really good today at data synthesis and fairly good at what I'm going to describe as like [crude products]. And I think that what you're going to find is that we are going to have increased AI system human teaming, and the need for folks to be able to design around the capabilities of AI systems. For example, if you're a business analyst, you might be leveraging multiple AI agents as part of your work, and you might be supervising or otherwise putting that kind of information or that presentation together in the context of your job.

Sasha Sinkevich

Yeah, and you did mention earlier that the productivity in the EU has dropped. Based on my knowledge, and I'm not claiming that I know much about levels of productivity, but based on what I know, the productivity levels in the US are lowest since the Second World War, which is pretty low. And it sounds, based on what you believe the AI future will look like, it will help to boost functions that exist today, and it will help us to get through functions that we execute on a daily basis much quicker, with a higher level of certainty and accuracy, which is definitely something that all of us, especially we as part of a larger system and as a group of people, really strive for.

Jon McLachlan

Resistance is futile, like the Borg, if that's what you mean, Sasha.

Neil Serebryany

Yeah. And I think that on a kind of more macro basis, we're not necessarily going to be able to get into kind of every technology and how it affects the macro of our society and kind of other societies. But everyone kind of talks about this kind of post-AGI future where you're not necessarily going to have any need. And I don't actually think that's the case. I think that, just limiting it to two technologies, it's likelier and likelier that we're going to get to being a species that has the ability to travel to Mars at a fairly similar time frame to where we're likely to see the advent of, depending on how you define AI. And I think that kind of increased resource set that we have as a society, thanks to our AI future, is likely to be one of the core kind of propelling capabilities or technologies that will allow us to become a species that exists on multiple planets, or a multi-planetary species.

Jon McLachlan

That's really an incredible vision, the long-term vision, but also that shorter-term vision of, it sounded almost like everyone with a white-collar job could be promoted to manager. And then what you're managing is you're managing your AI minions.

Neil Serebryany

I think that's a really well-articulated way of putting it, [Jon].

Jon McLachlan

I mean, I'm just rephrasing your insights. Just by going back to the founder journey that you've had so far, who was that first customer that you landed? I don't know if you're allowed to say.

Neil Serebryany

It was actually the Department of Defense.

Jon McLachlan

That's an incredible first customer. That must have been like quite the uphill battle.

Neil Serebryany

Yes, I think that ultimately one of the biggest advantages of working with customers like that is how they put you through your paces, and just the level of kind of rigor that's required in order to be able to work with them.

Jon McLachlan

Converse question of your best day at Calypso is, what was the most challenging day or moment?

Neil Serebryany

Yeah, of course. I think the most kind of challenging moment for us as a company is probably when we were in between two changes. This was prior to AI becoming a widely talked about subject. And we had been expecting this really large contract that was really going to make the company, and it didn't end up coming in. And I think that the kind of fact that we had been hanging a lot of hope on this specific contract that was supposed to be in place, that everything had been … and it didn't happen, didn't come in, was probably one of the more painful days inside of the company.

Jon McLachlan

Did they actually have a point in time where they said no? Or did you just get dragged through the mud, and eventually you had to realize, like, for oneself, it's not happening?

Neil Serebryany

Correct.

Sasha Sinkevich

Even though there were challenging moments, this is one of those things that gives a testimonial to the character of a founder of the company. Regardless what happens, there are hard days and there are difficult days, but as long as you persist, and as long as you believe in the product and you have great value add to the market, things just tend to work themselves out. And that's a great testament to you. Even though you had a challenging day, we are where we are today.

Jon McLachlan

Yeah. It's not a failure unless you give up. As long as you keep on persisting, it's just not a failure.

Sasha Sinkevich

When you had those discussions with large institutions that care about data, they care about systems that govern the data, what was the most challenging component to close the deal? Did you have to change the product and offer an on-prem deployment, or a standard form of on-prem deployment? How were you able to navigate that space?

Neil Serebryany

Yeah, I think one of the things you have to be cognizant of in the enterprise is to not orient yourself towards an individual specific customer, no matter how shiny that customer is, particularly in the context of a customer that wants things that are very unique to them. And that's one of the harder lessons you have to learn, because that kind of incremental ARR boost during your perhaps early days looks really appealing and really shiny, but if it takes you off course of the broader goal or the broader kind of mission set, it isn't worth doing in the first place.

Sasha Sinkevich

Yeah, that's a great way to answer the question. Essentially, we always have to weigh in the benefit versus cost of doing certain things, especially early on.

Jon McLachlan

Totally. Yeah. I've also seen that same sentiment resonates true with the investors that you may bring on board, because they may bring their own expectations. And if they're not aligned with your vision, … I've seen that happen in a few companies in past lives, you know.

Sasha Sinkevich

Yeah, what is an average profile of customer, Calypso customer? Who that customer is? What are they trying to solve immediately when they reach out?

Neil Serebryany

Yeah, so the average customer for us is a really large institution, with a propensity right now towards being in the technology, financial services, insurance vertical. But we have customers across many different verticals at this point, and are agnostic, like most security companies, to the vertical that customers come from. They're often someone that has or comes from the security part of the organization. And the problem that they're trying to solve is, we are deploying AI in, whether a chatbot or an agent or an application, and we need a system to be able to help secure that deployment.

Sasha Sinkevich

So they reach out to secure the deployment of the entire logic that serves or services AI functions? Or do they mainly reach out to govern and protect and ensure the integrity of the model itself? What is the main sticking traction, initial traction point?

Neil Serebryany

Yeah, super good question there. It's really on the, we are exposing this model to a set of users, and we're potentially doing so via an integration into an application, an integration into an agent, or with users inside or outside of the company, and we need to be able to have visibility and guardrails over the usage of that application or that agent or that kind of access point into the model.

Sasha Sinkevich

So essentially, you take the full ownership of the new understanding of what security means in the context of AI systems, and you take away that headache from the company and from the customer that reached out. And you have the full ownership and promise that the now new service that is integral to the success of a company is fully protected and secure.

Jon McLachlan

Do you ever work with cybersecurity insurance companies that are trying to insure these products that are being released by your customers, that you give them some sense that you've reduced or eliminated a huge section of the risk, and they get a discount on their insurance rate?

Neil Serebryany

Yeah, it's definitely an area that we've thought about, and potentially something that we'll think about further in the future. I think one of the fascinating things about the insurance world is just how much of the world's risk is really reinsured by four companies, Munich, Swiss Re, SCOR and Hannover Re, and the impact that one of these companies can have in terms of their policies being applied downstream to your primary insurance carriers.

Jon McLachlan

Yeah, definitely. Well, this is a huge success with CalypsoAI. This is no small feat, to build a product, have a [vision], build a company, [attract] the talent, find the market. So congratulations, all of your success so far. I'm really excited to see that success continue and really hockey stick. Curious if, with all of your lessons learned through your journey so far, would you accept an opportunity to meet a younger version of yourself? And if you would accept that opportunity, would you have any advice for your younger self?

Neil Serebryany

Yeah, I think the kind of biggest single thing is continuously to be confident in your own abilities and steadfast in your own convictions. Be resolved.

Jon McLachlan

Nice. I like it. Exactly.

Sasha Sinkevich

Neil, if you had an abundance of time on your hand, and based on what you see in the industry, based on what you know about the pain points, based on the pain points that you witness yourself, is there a service or a tool you wish you had time to build, or you wish someone else would just go off and build it?

Neil Serebryany

Yeah, I think that particularly as you start to look at AI safety debates moving forward, it's increasingly likely that you are not actually going to get to it in the context of the transformer architecture models that we have available to us today. That effectively, rather than just doing word prediction, you're going to need models that have the ability to actually interpret the world around them, and to actually understand beyond just doing token prediction. And in a world where you have models that are actually understanding the world around us, I think that you have a number of very interesting opportunities and tools that need to be built, from the kind of cross-cultural understanding side of the house, where within a lot of the psychology and kind of emotion literature, a lot of technologies around conformist versus individualistic societies lead to very different results, to the security side of the house, in the context of understanding rather than just doing word prediction, and what does that mean in the context of how do you actually secure AI systems? And then within the context of what does that actually mean for the future of work? What does that mean for the future of what it means to be a productive member of society?

Sasha Sinkevich

Yeah, communication is very, it's a critical component of society and economical success of a society, and it feels like the past years have broken a lot of standard communication channels that we had as a modern society. 2018, it's very different than 2024, given events that have happened in between. And it sounds like, with the help of some of the advancements in the AI technology, there is an opportunity to help not only the lost communications that we've had, but also enhance cross-border communications and cross-cultural communications.

Neil Serebryany

A hundred percent.

Jon McLachlan

Beautiful. It's so funny, when you're describing that example of what's really missing to get our autonomous agents, AGI, out the door, is the piece that actually goes out, looks at the real world and sees the real world for what the real world actually is, and not just doing word prediction, as you put it. The thing that came to my mind was a backseat driver AI version that could see the real world but then articulate, like, hey, turn left here, go over here, oh no, watch out for the pedestrian.

Sasha Sinkevich

But this is where we as a user of the system have to trust the system that it does the right thing. And this is where a company such as CalypsoAI comes in, to build a trust. So thank you so much for taking on a very forward-looking and critical aspect of the integration of artificial intelligence in daily life. And that function is to make sure that safety controls are in place.

Neil Serebryany

Yeah, thanks so much for having me, Jon and Sasha. It's really great, and look forward to it.

Jon McLachlan

And thank you to all of our listeners to tuning in to another episode of The Security Podcast of Silicon Valley. I am your co-host, Jon McLachlan, joined by Sasha Sinkevich and Neil. It's an absolute pleasure. Thank you again.

Neil Serebryany

[No], it's such a pleasure. Thanks, guys.

Jon McLachlan

Thank you, everyone.

FAQ

Questions this episode answers

Who is Neil Serebryany?
Neil Serebryany founded CalypsoAI in September 2018 and led it as chief executive until August 2024. Before that he spent time at the National Geospatial-Intelligence Agency and worked in innovation at the Department of Defense. He studied cognitive science at the University of Southern California, and since January 2025 has led Hyperion Horizons Group.
What is CalypsoAI?
CalypsoAI built a platform to secure the way companies use AI models at what it called the inference layer, with visibility, data controls, red teaming and protection against attacks such as prompt injection. F5 announced it would acquire the company in September 2025, and its product is now F5 AI Guardrails.
What does secure AI mean?
In Neil's words, it's risk reduction rather than perfection: controls and technology that let you monitor and control AI-specific risks, on top of the infrastructure and data security every system needs.
Where does AI need new kinds of protection?
Neil named two places. The model side, against data poisoning and tampering with training. The deployment side, across many models, applications and agents, with visibility, control of the data going in and out, and compliance.
What is data poisoning?
Slipping bad examples into the data a model learns from, so the model learns the wrong thing. NIST's January 2024 taxonomy of adversarial machine learning lists poisoning among the main classes of attack.
Which AI rules did Neil say to watch in 2024?
Existing privacy law such as GDPR and California's consumer privacy law, new AI laws such as the EU AI Act and a California bill for foundation model developers, and a wave of national AI laws he called AI nationalism.
What happened to California's SB 1047?
It passed the state Senate 32 to 1 and the Assembly 48 to 16, and Governor Gavin Newsom vetoed it on September 29, 2024. A year later to the day, he approved SB 53, a transparency law for frontier AI developers.
What does the EU AI Act require?
It sorts AI by risk. Unacceptable-risk uses are banned, high-risk applications face security, transparency and quality obligations and conformity assessments, and limited-risk systems must tell users they're interacting with AI. It entered into force on August 1, 2024.
What were the scanner wars?
Neil's name for the period when AI security vendors competed on how many detectors they had for things like personal data, card numbers and prompt injection. The list never ended, and the detectors were mostly English-centric.
Why do AI security checks need to work in every language?
Attacks that target language work in any language, so a scanner built for English misses the rest. OWASP's 2025 prompt injection scenarios include attackers who use several languages to get past filters.
What is the difference between invention and innovation?
Invention is the new thing itself. Innovation is everything that makes it useful at scale. Neil's example was electric light, where producing it at scale and powering it created more value than the invention.
Who was CalypsoAI's first customer?
The Department of Defense. Neil said customers like that put a startup through its paces and demand a high level of rigor.
Who buys AI security?
In Neil's experience, large institutions, leaning toward technology, financial services and insurance, with a buyer from the security side who is deploying AI as a chatbot, an agent or an application.
What happened to CalypsoAI after the episode?
Neil's time as chief executive ended in August 2024. Under Donnchadh Casey the company was a top-two finalist in the RSAC 2025 Innovation Sandbox, and F5 announced a $180 million acquisition on September 11, 2025. CalypsoAI said it had joined F5 on September 29, 2025.
What should a company do first to secure its AI?
List every model, agent and AI application with an owner, control the data going in and out, test in every language your users write in, red team before launch and after major changes, and map the rules where you operate.
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