Noida-based startup LLUMO AI, which focuses on optimizing AI performance, has raised $1 million in a seed funding round. This round was led by SenseAI Ventures, a venture capital fund specializing in artificial intelligence. Several other investors, including India Quotient, AumVC, Venture Catalyst, IIM Indore Alumni Angel Fund, and some US-based angel investors, also contributed to the round.
What LLUMO AI Does
Founded in 2023 by Shivam Gupta and Akshat Anand, LLUMO AI helps businesses manage the high costs and performance issues linked to Generative AI and Large Language Models (LLMs). Their innovative solutions enable companies to cut Generative AI costs by up to 80% while also improving the performance of LLMs.
LLUMO AI is dedicated to solving two major problems businesses face when using Generative AI: the significant costs involved and the challenges of accurately measuring AI performance in real-world settings.
Tackling Key Challenges
One of the key problems LLUMO AI identified is the high cost of using Generative AI, especially in Retrieval-Augmented Generation (RAG) pipelines. In these systems, prompt token size can grow by five to ten times, causing costs to surge.
To combat this, LLUMO AI developed a platform that features two unique models. The first model compresses prompts, lowering costs while still delivering high-quality outputs. The second model, called Eval-LM (Evaluation Language Model), allows businesses to evaluate the performance of their LLMs without relying on pre-existing data.
This dual approach helps businesses get better results from their AI systems while keeping costs under control.
Solutions for Cost and Performance
By leveraging these two proprietary tiny LLMs, LLUMO AI’s platform offers businesses a way to optimize their AI operations. The first model reduces the size of prompts, which in turn cuts down on expenses. The second model helps businesses evaluate the AI’s performance more accurately, even when no comparison data is available.
Shivam Gupta, co-founder of LLUMO AI, said, “Our mission is to make Generative AI more accessible and affordable for businesses. We aim to help companies unlock the full potential of AI by providing tools that address both cost and performance challenges. This funding brings us closer to achieving our vision of making AI truly transformative for businesses.”
Plans for Expansion
With the new capital, LLUMO AI plans to expand its reach into the US market. The funds will also support the development of an enterprise-grade platform that integrates smoothly with existing AI workflows. The startup’s goal is to help businesses transition from the proof-of-concept (POC) phase to full-scale AI production.
This platform will allow companies across various industries to efficiently deploy AI solutions, thereby accelerating their growth and transforming customer experiences.
Backing from SenseAI Ventures
SenseAI Ventures, the lead investor in this round, believes that LLUMO AI’s innovations address two of the biggest barriers to AI adoption—cost and performance quality. Rahul Agarwalla, General Partner at SenseAI Ventures, stated, “At SenseAI, we focus on investing in technologies that solve key challenges in AI. LLUMO AI’s solutions directly tackle the issues of cost and quality, making them a perfect fit for our portfolio.”
LLUMO AI’s recent $1 million funding round marks a significant step forward for the startup as it seeks to revolutionize the use of Generative AI in businesses. With innovative solutions that drastically cut costs and improve performance, LLUMO AI is well-positioned to become a leader in AI optimization, helping companies unlock the true potential of AI while staying within budget.
