Resect AI raises $25M to reduce LLM hallucinations

Resect AI raised $25M from undisclosed private equity investors on September 3, 2026, as it emerged from stealth in Washougal, Washington. The company is building a patented in-stream accountability layer for LLMs that detects and corrects hallucinations inside the model before responses reach users.

The startup says its technology injects probes into internal model activations during generation, then uses corrective algorithms when signals suggest fabrication. The approach is designed to differ from post-hoc filters that evaluate completed outputs, and the platform is intended to connect to any LLM via API.

Resect AI is targeting publishing, finance, healthcare, research, and education, where fabricated information can create audit, liability, and reputational risks. Published evaluations cited in the announcement put fabrication rates for frontier models anywhere from 3% to 27% depending on task complexity and domain.

The company plans to hire 50 employees by the end of 2026 from the Seattle and Portland labor markets. No lead investor or valuation was disclosed, leaving questions about deal structure and how the company’s patents and in-stream correction will perform in enterprise deployments over the next 12 to 18 months.