Noida-based AI optimization startup LLUMO AI raises $1 million funding

Noida-based AI optimization startup LLUMO AI has raised $1 million in a seed funding round led by SenseAI Ventures, an AI-focused venture capital fund.

The round also saw participation from several other investors including India Quotient, AumVC, Venture Catalyst, IIM Indore Alumni Angel fund, and various US-based angel investors.

What does LLUMO AI do?

Founded in 2023 by Shivam Gupta and Akshat Anand, LLUMO AI aims to tackle the growing costs and performance challenges associated with Generative AI and Large Language Models (LLMs).

The startup empowers businesses to reduce Generative AI costs by up to 80% and gain visibility into LLM performance.

It is focused on solving two major challenges faced by businesses when integrating Generative AI and LLMs into their products and services. These include the high costs associated with LLM usage and the difficulties in assessing LLM performance in real-world scenarios.

The startup identified that these issues are particularly pronounced in Retrieval-Augmented Generation (RAG) pipelines, where the prompt token size can increase by five to ten times, leading to skyrocketing costs.

AI solutions to optimize costs and performance

To address these challenges, LLUMO AI has developed a platform featuring two proprietary tiny LLMs, trained on millions of data points. The first model compresses prompts, significantly reducing costs while maintaining the quality of outputs.

The second model, Eval-LM (Evaluation Language Model), allows businesses to assess the performance of LLM-generated output without the need for ground truth data.

This approach enables companies to optimize their LLM implementations, achieve faster iterations, and drive growth without overwhelming their budgets.

"We founded LLUMO AI with a clear mission: to democratise access to generative AI and help businesses unlock its true potential. Our platform not only addresses the critical challenges of cost and performance but also empowers our customers to make data-driven decisions that accelerate growth and transform customer experiences. With this funding, we are one step closer to realising our vision of making generative AI accessible, affordable, and impactful for businesses worldwide," said Gupta.

Focused on expansion

LLUMO AI plans to use the raised capital to support expansion into the US market. In addition, the funding will facilitate the development of an enterprise-grade platform designed to integrate seamlessly with existing AI workflows.

The platform aims to bridge the gap between proof-of-concept (POC) stages and full-scale production, enabling efficient deployment of AI solutions in businesses across various industries.

"At SenseAI, our research shows that cost and quality are the two biggest hurdles in making LLMs practical. LLUMO AI's innovations directly address both of these issues head-on. We back founders like the LLUMO AI team who build game-changing technology and tools to solve critical AI challenges, which aligns perfectly with our focus on investing in AI applications and tools," said Rahul Agarwalla, General Partner at SenseAI Ventures.