Traceloop, an Israel-based startup, announced the launch of its commercial platform alongside securing an undisclosed Seed funding round aimed at making Artificial Intelligence agents production-ready. The funding round was led by Sorenson Capital and Ibex Investors, with participation from Y Combinator, Samsung NEXT, and Grand Ventures. The company was founded by CEO Nir Gazit, who has previous experience building large language model (LLM) systems at Google, and CTO Gal Kleinman, former head of ML infrastructure at Fiverr.
The company’s core mission is to bring engineering rigor to autonomous agents powered by large language models. Traceloop addresses a pervasive problem in the Artificial Intelligence landscape: the difficulty of tracking and testing AI agent behavior after deployment. Many organizations struggle with limited visibility into generative Artificial Intelligence failures, leading to user disengagement and reputational risk. According to Gazit, most users do not report bugs when agents malfunction; they simply abandon the product.
The Traceloop platform is built atop OpenLLMetry, an open-source tool suite now commercially available. The product automates agent testing and observability, allowing enterprises to identify and resolve problems early, monitor real-world agent activity, and confidently deploy fixes. Major companies including IBM, Cisco, Dynatrace, and Miro already utilize Traceloop’s solution to ensure the reliability of their Artificial Intelligence agents. The open-source foundation has seen rapid uptake, with OpenLLMetry boasting over 500,000 monthly installs, 50,000 active weekly SDK users, and more than 60 contributors on GitHub. Traceloop’s advancements aim to eliminate guesswork in prompt engineering, advocating for a disciplined, transparent approach to integrating Artificial Intelligence into mission-critical systems.
