Engram Raises $98 Mn in Round from General Catalyst, Others

The funding comes as many businesses face a major challenge with AI tools. While AI can analyze information and solve complex tasks, it often lacks knowledge about a company's internal data, processes, and history. As a result, AI repeatedly reviews the same documents and relearns the same information for every new request. As companies deploy more AI agents across their operations, this repeated work is increasing costs and becoming a growing financial burden.

"Whatever the AI knows about you is improvised on the spot — a sticky note about your past, a document pulled mid-conversation," said Dan Biderman, CEO and co-founder of Engram. "If we can anticipate your interactions, we can prepare memories ahead of time instead of pasting them on the fly."

"When an AI reads a 70,000-word legal contract, which is roughly 400 kilobytes of text, its internal memory of that document can swell past 100 gigabytes. That's 250,000 times larger than the original file, and a huge part of what makes AI slow and expensive to run," said Eyuboglu. "We do that studying once, ahead of time, training the model to compress everything it learns into a compact memory it can reuse on every query."

"Our customers have built up extraordinary knowledge inside Microsoft 365, and we've only begun to tap what it can do for them," said Jason Graefe, Corporate Vice President, AI Partner Catalyst, at Microsoft. "Engram's approach could turn that knowledge into a kind of memory each organization owns and controls, while making AI efficient enough to power the long-running, proactive agents we believe every knowledge worker will eventually rely on. It's the sort of frontier bet we want to be making."

"Memory is the missing ingredient in AI," said Hemant Taneja, CEO of General Catalyst. "We see enormous potential for Engram's technology across the companies we're building and transforming in healthcare, legal, and financial services, where the institutional knowledge is deep and the cost of running AI against it is only growing. The ability to improve the speed, independence, and cost efficiency of agents is one of the most important things any company can deliver."

Engram is developing AI that can understand and remember information about a company. Instead of starting from scratch with every request, its AI learns an organization’s data, processes, and knowledge in advance, creating a unique memory system for each customer.

Founded by AI researchers from Stanford, Berkeley, and Cornell, Engram says its technology can deliver performance similar to or better than leading AI models while using only 1–10% of the computing resources (tokens). The more the AI is used, the smarter it becomes, and customers keep ownership of their data and memories. The company is based in San Francisco and is backed by investors including General Catalyst, Kleiner Perkins, and Sequoia Capital.

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