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AI startup Octen raises $10m seed to build search infra

Octen, a San Francisco- and Singapore-based startup building search infrastructure for AI agents, is emerging from stealth with a US$10 million seed round led by Square Peg.

Octen said Argor and leading AI scientists also joined the financing.

Octen was founded by Kuan Zou, who previously led AI search at Alibaba Cloud for more than five years and earlier built Baidu’s enterprise search platform from the ground up.

Octen said it has assembled a team of engineers and AI researchers from major tech companies.

🔗 Source: Square Peg

🧠 Food for thought

Implications, context, and why it matters.

Octen joins a crowded race against established players

  • Legacy search APIs were built for human web searches. They can lag in AI use cases, and one provider charges up to $200 per thousand queries 1.
  • That gap helped AI-native infrastructure take off. Perplexity, an AI search company, says its system handles 200 million queries a day and its index covers more than 200 billion unique URLs 1.
  • Latency now sets the bar. Perplexity puts its median response at 358 milliseconds (ms) 1.
  • Octen targets faster replies. It says its Web Search API averages 99 ms and supports more than 1 million queries per second (QPS) 2.

AI-native search drives a trillion-dollar infrastructure shift

  • Perplexity expects AI agents to send “orders of magnitudes more requests” than legacy search engines. It says traditional systems topped out around 10^10 queries per day 1.
  • Rising demand is pushing a new hardware buildout. AI data center capital expenditures (capex) are projected to hit $1 trillion by 2028 3.
  • Pressure for lower delays is also speeding up consolidation. NVIDIA struck a roughly $20 billion licensing-and-acqui-hire deal with Groq, a company that builds AI accelerator chips, for its LPU (Language Processing Unit) technology and engineering team 3.
  • Octen wants to rebuild the search layer as low-latency infrastructure for AI models rather than people, and it aims to ride this shift 2.

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