Scaled Cognition Raises $100M Series A Led by Khosla Ventures to Build Reliable Enterprise AI
Scaled Cognition has built a model with the conversational quality of leading LLMs and something they lack: reliable, hallucination-free performance
MOUNTAIN VIEW, Calif., June 25, 2026 (GLOBE NEWSWIRE) -- Today, AI model lab Scaled Cognition announced it has raised $100 million in a Series A funding round led by Khosla Ventures. The company is focused on solving one of the biggest challenges in AI today: reliability. While AI systems have become remarkably capable, they remain prone to mistakes and hallucinations that limit their use in critical enterprise workflows. Scaled Cognition is building AI that enterprises can trust, and is already in production with Fortune 500 enterprises across financial services, healthcare, telecom, and insurance — where a wrong answer has real consequences.
Scaled Cognition was co-founded by CTO Dan Klein, a UC Berkeley professor of AI and leading natural language processing researcher, and CEO Dan Roth, who together previously built and sold one of the first agentic AI companies to Microsoft. The funding will be used to expand the company’s research team and accelerate enterprise deployments.
"We spent years trying to apply AI to business applications and found it was essentially impossible to make these systems reliable," said Dan Roth, CEO and co-founder of Scaled Cognition. "You could have an interaction that was spectacular, think the singularity is here, and then look at the data and discover the system was making grievous errors. The problem isn't resources or effort, it's architecture. Solving it took years of methodical work and more innovations than we can count.”
Scaled Cognition’s first flagship model is APT (Agentic Pretrained Transformer), which delivers the conversational quality of leading AI models while eliminating hallucinations and guaranteeing policy-adherent performance, what the company calls Super-Reliable Intelligence. APT is smaller, faster, less expensive, and more accurate than the frontier models — and available for VPC and self-hosted deployment, giving enterprises full ownership of their AI without ongoing dependency on third-party model providers. APT is already powering customer experience and service operations for leading enterprises.
Genesys®, a global cloud leader in AI-Powered Experience Orchestration serving more than 8,000 organizations in over 100 countries, utilizes APT within the Genesys Cloud™ platform for agentic virtual agent capabilities. Genesys has also invested in Scaled Cognition.
"We've made a series of breakthroughs that do for conversational AI what verifiable reinforcement learning has done for coding. Reliability is engineered into the architecture of our models, not bolted on after the fact. The biggest reliability challenge isn't the mistakes that look wrong; it's the ones that look completely correct. If you want AI to take real actions on behalf of customers, that's the problem you have to solve," said Dan Klein, CTO and co-founder.
"The way to quickly get into the market is to take a frontier model and put a layer on top. What Scaled Cognition did was develop a different approach, then combine it with the best of LLMs,” said Vinod Khosla, founding partner of Khosla Ventures. “That took more research and more developmental risk. Most people are too lazy to do that. The result is Super-Reliable Intelligence: a model that will not give you a wrong answer. In any industry where an agent takes a real action, nothing else counts."
AI has become incredibly capable, but reliability remains one of the biggest barriers to enterprise adoption. Over the next twelve months, companies using Scaled Cognition's models are on track to automate more than one billion customer service interactions.
"When a system makes mistakes 30% of the time, complex issues go unresolved and customers don't come back," said Roth. "With our models, most issues get fully resolved, resulting in hundreds of millions saved in operational costs, and customers who actually come away happier."
Beyond the model, Scaled Cognition has built a full platform for enterprise AI deployment: agentic tooling, simulation and evaluation frameworks, and live agent monitoring — giving enterprises everything needed to build, test, and operate reliable AI at scale.
Customer experience is the first application. The larger opportunity is the $600 billion business process outsourcing market — customer service, IT support, HR, finance — where enterprises are beginning to insource what they once outsourced, replacing third-party managed services with AI workforces they own and control. Scaled Cognition is building the infrastructure to make that possible.
About Scaled Cognition
Scaled Cognition is an AI model lab building Super-Reliable Intelligence for the enterprise. The company's flagship model APT delivers human-like conversational fluency while eliminating hallucinations — powering AI agents that follow policy and take action when the stakes are real: bank balances, medical records, flight changes, insurance claims. Scaled Cognition's platform includes the model, agentic tooling, simulation and evaluation frameworks, and live agent monitoring. Founded by Dan Klein, a UC Berkeley professor of AI, and Dan Roth, who together built and sold one of the first agentic AI companies to Microsoft.
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Lindsey Schank, Archetype
media@scaledcognition.com
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