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The Token Company

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Compression middleware that improves LLM outputs

Winter 2026Founded 20252 peopleSan Francisco, CA, USA
AI insightcan contain mistakes
LLM Context CompressionAPI/InfraLLM API consumers, AI teams, applicationsMedium competition
Moat
Proprietary compression algorithms; demonstrated cost and latency improvements; easy integration as middleware.
Key risk
Model providers may add native compression; commoditization risk; performance gains volatile by model/task.
Why now
LLM costs exploding; context window optimization critical for economics; demonstrated 5% purchase lift evidence.
Competitors
LiteLLM, Llamaindex, Langchain (caching), Anthropic Prompt Caching, OpenAI Batch API

About

Compression middleware that removes context bloat in milliseconds, lowering costs and improving end-to-end latency. Compression is especially effective across natural language workloads. In a blind LLM arena case study with one of our customers, compressed requests increased user preference, lowered costs, and lifted purchase volume by 5%.

Founders · 1

Otso Veisterä
Otso VeisteräFounder

Founder of The Token Company

Launch

Launched on Y Combinator · Mar 2026
View launch post ↗

Intelligent compression for LLM context bloat

The Token Company builds an API for LLM input compression using a fast ML model (not a generative LLM) to remove unnecessary tokens from prompts, reducing token counts, latency, and costs while preserving semantic intent. It targets production LLM users who face context bloat, high costs, or latency, and claims faster prompts (100k tokens in under 100ms) and performance gains.

Formerly Otsofy

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