#United States #San Francisco #Datawizz #Iddo Gino #Specialized Language Models

Datawizz Secures $12.5M Seed Round to Innovate AI

Datawizz, an ambitious startup founded in 2025 by serial entrepreneur Iddo Gino, has recently announced it has raised $12.5 million in a seed funding round led by Human Capital, with notable participation from BGV and 91VC among others. This significant investment marks a pivotal moment for the company as it seeks to transform artificial intelligence (AI) through its specialized approach to language processing.

Understanding the Challenge of AI Costs

The global AI market has witnessed exponential growth, but this surge comes with its downsides. Companies are reportedly spending around $8.4 billion on API calls to large language models (LLMs) in the first six months of 2025 alone. Such expenses have more than doubled compared to all of 2024, prompting industry leaders to reconsider their strategies. Gino points out that many applications suffer from inverted unit economics and yield inconsistent outcomes. Datawizz aims to tackle these challenges by offering Specialized Language Models (SLMs) that are faster, cheaper, and deliver accuracy on par with—or even better than—traditional models.

The Datawizz Solution

Datawizz's pioneering innovation involves creating SLMs which serve as an alternative to the existing, larger models. These specialized models are approximately 1,000 times smaller than conventional LLMs and are uniquely trained to handle specific requests, streamlining the efficiency of AI applications significantly. The company’s end-to-end platform auto-profiles organizational AI requests, trains the specialized models accordingly, and routes inquiries to the most suitable model.

For instance, instead of relying on a general-purpose model—which often results in longer response times and inefficiencies—Datawizz’s system can swiftly direct a query to a model that is finely tuned to address that particular request. In practical terms, this translates into:

• - 85% Reduction in AI costs, dramatically lowering the financial burden of API usage.
• - 5-15x Improvement in speed, resulting in more responsive user experiences.
• - Enhanced precision, with models fine-tuned to produce more accurate and predictable outcomes, especially when supplemented with human feedback.

These advancements ensure that companies maintain control over their AI processes, as Datawizz builds models completely owned by the customer—running on-premises, on-device, or within private clouds. This vital feature guarantees that data remains confidential and external API dependencies are minimized.

Industry Predictions and Future Prospects

Looking forward, Datawizz anticipates that by 2030, around 70% of AI traffic will be served by sub-5 billion parameter Specialized Models, with over 50% of that traffic routed through its innovative platform. This projection indicates a considerable shift in how AI services will be structured, placing a premium on flexibility, ownership, and enhanced performance.

Gino's experience as the founder of RapidAPI, the world's largest API marketplace, places him in a strong position to spearhead this transformation within the AI landscape. The implications of Datawizz's innovations could very well redefine the future of AI, instigating a more sustainable and economically feasible ecosystem.

For further information about Datawizz's initiatives and vision for the future of AI, visit their official website at Datawizz.