Modulate Raises $25 Million to Expand Audio AI Efforts

Modulate has secured $25 million in funding to advance its "audio-native" AI technology. The company's artificial intelligence models are now finding applications in areas such as fraud prevention, voice AI agent supervision, trust and safety, and customer experience. Modulate's co-founder and CEO, Carter Huffman, emphasized the growing importance of voice as an interface for AI, stating that audio-native AI is necessary to address new security challenges.

Huffman explained that their audio-native AI models are effectively combating deepfake attacks, enabling voice agents to recognize emotions, respond with empathy, identify dangerous behavior, and monitor performance. The models analyze over 10 million hours of audio monthly, with over 600 million hours processed in total. Modulate's technology is employed by various organizations to protect against deepfake hackers in healthcare, prevent child grooming voice conversations, and reduce extremism and harassment on social platforms.

This funding expansion aims to accommodate the increasing demand from developers and partners building voice applications in sectors like security, customer experience, communications, AI agent supervision, and trust and safety. The surge in AI-generated voices poses significant risks, as highlighted by the FBI's 2025 Internet Crime Report, which documented over 22,000 AI-related fraud complaints resulting in losses exceeding $893 million.

Congressional researchers estimate that over 95% of voice clone victims do not report their losses. PyMTNS Intelligence research found that 58% of large companies reported encountering AI-generated documents or deepfake-related attacks in the past year, a significant increase compared to smaller businesses. The new funding comes amid the rise of sophisticated fraud schemes that combine deepfake video, cloned voices, synthetic identity creation, fabricated employment histories, and AI-generated financial behavior.

These synthetic borrowers exploit AI algorithms to navigate onboarding checks and underwriting models before disappearing once loans are secured.