Seattle startup ElastixAI raises $16 million for AI inference tech

A stealthy new AI startup in Seattle, ElastixAI, has raised $16 million to build technology that aims to reduce the cost and complexity of running large language models.

Rather than focusing on training, the company is developing an AI inference platform to optimise how these models operate, whether on cloud servers or edge devices. The funding round is led by Bellevue-based venture capital firm FUSE, with support from several others.

ElastixAI is led by CEO Mohammad Rastegari, formerly CTO of Xnor, a startup acquired by Apple in 2020. He co-founded the company with Saman Naderiparizi, also ex-Apple and Xnor, and Mahyar Najibi, who worked at both Apple and Waymo.

The team’s background in AI hardware and software gives them a unique edge in addressing challenges at a stage where AI models generate responses from trained data.

Instead of building a one-size-fits-all solution, the startup’s platform is designed for flexibility, allowing customers to fine-tune infrastructure to specific needs. ‘We saw a gap in delivering scalable and low-cost inference,’ said Rastegari.

The company remains in stealth but says its platform could serve both hyperscalers and enterprises looking to integrate AI into everyday operations.

With other players like Nvidia and Fireworks.ai competing in the inference space, ElastixAI may even count some of them as future customers.

Rastegari and Naderiparizi are also affiliate assistant professors at the University of Washington, and their startup reflects Seattle’s growing reputation as a hub for advanced AI development — a trend Apple has helped shape with several acquisitions in the region.

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