A form of encryption that permits computation directly on ciphertext, producing an encrypted result matching operations run on the plaintext.
Fully Homomorphic Encryption (FHE) allows AI models to process and run inference on encrypted data without decrypting it in memory. In principle, an enterprise can send sensitive data to a cloud-based LLM, receive an encrypted prediction, and decrypt the result locally, so the cloud provider cannot read the underlying data.
See also Air-Gapped Environment, Role-Based Access Control and Zero Trust Architecture.