Dallas-based Verax AI has secured $7.6 million in seed funding in a round led by TQ Ventures with participation from Concept Ventures, Cardumen Capital, Seedcamp, InMotion Ventures, and XTX Ventures.

Verax, with offices in Dallas, Tel Aviv, and London, is a developer of enterprise-grade software solutions that provide visibility and control of AI in production. Having emerged from stealth, Verax AI said it plans to use the fresh capital to accelerate its go-to-market processes and increase awareness.

Mitigating risks of AI errors, hallucinations, biases, and more 

Verax said an organization’s commercial rollout of LLM-based (large language model) products is often hindered by a lack of transparency and predictability, including such unexpected outcomes as factual errors, hallucinations, biases, or other deviations from the designed behavior.

All of that can result in great financial and reputational harm to the companies that rely on them, Verax said, adding that the company helps its clients mitigate these risks in real time.

Launches Verax Control Center

Verax AI also announced the launch of its enterprise-grade software solution, Verax Control Center, a “state-of-the-art” solution designed to provide visibility and control of LLM-based products in production, enabling trustworthy and responsible AI.

“We’re excited to be able to simultaneously announce our seed round and the release of Verax Control Center,” Verax AI Co-Founder and CEO Leonid Feinberg said in a stateent. “Providing customers with increased AI trust, and a new level of visibility into how their AI products behave is a crucial step in protecting against risk and facilitating the widespread adoption of responsible AI.”

“We’re seeing many parallels between the challenges organizations are facing when adopting AI today and the ones they faced adopting the public cloud a decade ago,” Feinberg added, “As a result, we are perfectly positioned to help them.”

Exiting stealth mode to solve AI challenges

Verax AI was founded by Feinberg and Oren Gev, who collectively have more than 45 years of experience developing enterprise-grade software solutions and scaling technology companies. They first began working together in 2017 at CloudEndure, a company co-founded by Feinberg, where he was the vice president of product. CloudEndure was later acquired by Amazon Web Services.

The two continued working together at AWS until 2023, when they co-founded Verax AI.

The company said that while traditional machine learning Dev tools and Ops tools help optimize AI products at development and deployment times, Verax AI is the first to successfully mitigate risks once these AI products are moved to production.

The company’s solutions provide visibility into the production use of LLM-based products outside the lab and auto-correction of unwanted behavior in real-time without time-consuming configurations or human work.

“Companies of all sizes, across all industries, need to mitigate the risk of their production AI applications providing inaccurate, offensive, or embarrassing answers,” said Schuster Tanger, co-managing partner of TQ Ventures. “Successful entrepreneurs with years of experience developing and deploying enterprise-grade solutions, Leo and Oren have developed solutions that are uniquely qualified to meet the significant challenges faced by these companies.”

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