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Sheathe is a self-hosted privacy layer that runs on your premises to mask sensitive data in your code, docs, and tickets before they reach AI models like OpenAI or Claude. It detects sensitive entities—such as API keys, passwords, emails, and other credentials—using regex, pattern-matching, and an on‑prem LLM classifier, replacing them with deterministic placeholders while preserving the prompt's semantic structure. As a local proxy, it never sends your data to external servers and offers self-hosted API licenses (Solo, Team, Enterprise) with configurable data types and on-prem deployment options.
AI named Sheathe in February 2026.