01 Quantum Collaborates with Carleton University and NC CIPSeR to Combat AI Privacy Risks Using Post-Quantum Cryptography

Strategic Research Alliance Tackles AI Privacy Risks in Critical Infrastructure

01 Quantum Inc. has initiated a multi-phase research project with Carleton University and NC CIPSeR aimed at quantifying and mitigating privacy risks in AI systems used by financial institutions, government bodies, and defense sectors. The partnership will analyze how sensitive customer data is exposed when AI processes information in plaintext and how 01 Quantum's encrypted AI technologies can reduce these risks.

The initiative replicates a realistic financial services setting where multiple AI agents collaborate on tasks such as fraud detection and customer risk evaluation. By simulating this environment, researchers will identify vulnerabilities in current AI models and provide independent academic validation to help organizations assess 01 Quantum's encrypted AI architecture as a privacy defense solution.

Addressing Membership Inference Attacks and Data Leakage

This research specifically targets membership inference attacks, a privacy threat allowing adversaries to statistically determine if particular customer records were part of an AI model’s training dataset. This vulnerability poses significant risks for financial, governmental, and defense sectors, highlighting an urgent need for privacy-preserving technologies.

The project’s first phase will measure data leakage from a standard, unencrypted AI system to establish baseline privacy exposure. Subsequent phases will evaluate encryption-compatible AI components to demonstrate how Fully Homomorphic Encryption (FHE) can close the privacy gaps identified. This phased approach aims to deliver clear evidence of both the risks and the effectiveness of 01 Quantum’s solutions.

Compliance with U.S. Executive Order on Quantum-Resistant Cryptography

The collaboration supports compliance with the U.S. Executive Order issued on June 22, 2026, which mandates federal agencies to accelerate the adoption of quantum-resistant cryptographic standards. President Trump’s directive emphasizes the strategic threat quantum computing poses to current cryptographic systems and instructs agencies to identify vulnerable encryption systems, prioritize migration to quantum-resistant standards, and collaborate with industry partners to maintain secure operations.

The Executive Order also highlights the risk of adversaries harvesting encrypted data now for future decryption once quantum capabilities mature, underscoring the need for data-in-use protection technologies. The 01 Quantum-Carleton-NC CIPSeR project aligns with these regulatory objectives by quantifying privacy leakage in plaintext AI systems and demonstrating how encrypted AI models mitigate these threats.

01 Quantum’s Advanced Technology and Market Leadership

01 Quantum Inc. is recognized as a pioneering enterprise cybersecurity provider for the quantum computing era. Its technology portfolio centers on Post-Quantum Cryptography (PQC) solutions designed to safeguard digital systems from emerging quantum threats. The Company’s IronCAP™ technology, protected by U.S. patents #11,271,715 and #11,669,833, is integrated into its PQC offerings and applied across security-sensitive domains including digital assets, AI, email security, and enterprise infrastructure.

This research partnership with Carleton University and NC CIPSeR is a critical step in accelerating deployment of 01 Quantum’s PQC and FHE solutions, providing independent academic validation of the Company’s technology efficacy.

Executive Insights on the Collaboration’s Significance

Andrew Cheung, CEO of 01 Quantum, stated: "AI systems are deeply embedded in financial services, government operations, and national security, yet many still process sensitive data in plaintext, exposing avoidable risks. President Trump’s recent Executive Order highlights the urgency of protecting critical infrastructure from emerging cryptographic threats. We anticipate this research will provide independent, academic validation of our technology, reinforcing our conviction that encrypted AI will become essential infrastructure in the near future."

Prof. Perry Steckly, Principal Investigator at Carleton University, added: "This project enables us to examine real-world security and privacy challenges faced by critical infrastructure technologies in Canada today. By quantifying vulnerabilities in modern AI models, we assist institutions in understanding risks and evaluating mitigation technologies."

Research Approach and Project Phases

The research is structured in phases to comprehensively assess vulnerability and mitigation. The initial phase quantifies data leakage from standard, unencrypted AI systems within a simulated financial institution environment, providing measurable evidence of privacy risks in current AI architectures handling sensitive data.

Subsequent phases will integrate encryption-compatible AI components to validate Fully Homomorphic Encryption as a solution to close identified privacy gaps. This progression from risk identification to solution validation aims to equip financial institutions, government agencies, and critical infrastructure operators with independent academic evaluations of both threats and defenses.

Critical Infrastructure Security and Regulatory Framework

The announcement stresses that AI systems processing sensitive information in plaintext present unaddressed security challenges for critical infrastructure operators. The partnership between 01 Quantum, Carleton University, and NC CIPSeR seeks to provide independent research insights to help organizations assess encrypted AI architectures as defenses against AI privacy leakage.

This research aligns with growing regulatory emphasis on quantum-resistant cryptography and data protection. The June 2026 U.S. Executive Order reflects heightened governmental concern over quantum computing’s impact on cryptographic infrastructure. The 01 Quantum-Carleton-NC CIPSeR initiative supports this regulatory focus by exploring how advanced encryption technologies can safeguard next-generation AI systems across critical sectors.

About Carleton University and NC CIPSeR

Carleton University is a leading Canadian research institution renowned for expertise in cybersecurity, critical infrastructure protection, and advanced computing. The National Centre for Critical Infrastructure Protection, Security and Resilience (NC CIPSeR) supports interdisciplinary research to enhance national resilience against emerging technological threats.

The involvement of Carleton University and NC CIPSeR adds academic rigor and independent credibility to the project, providing the validation 01 Quantum requires to demonstrate its technology’s effectiveness in addressing AI privacy vulnerabilities within critical infrastructure.

Investor Outlook and Future Developments

This research collaboration serves as a validation initiative for 01 Quantum’s core Post-Quantum Cryptography and Fully Homomorphic Encryption technologies. Independent, peer-reviewed studies conducted by Carleton University and NC CIPSeR may boost confidence among institutional investors and enterprise clients regarding the efficacy of 01 Quantum’s encrypted AI architecture. The project aligns with regulatory momentum toward quantum-resistant cryptography adoption, strengthening the Company’s market position amid rising quantum computing threats.

The immediate impact on share price remains unclear from public information. Investors will likely monitor the initial research phase results quantifying data leakage in standard AI systems and subsequent phases demonstrating FHE as a mitigation strategy. Timelines for project completion and publication of findings have not been specified.