Pruna AI, a Paris and Munich-based software startup, has successfully raised $6.5 million in funding led by EQT Ventures to advance its AI model compression technology. The startup has developed an innovative optimization tool that compresses artificial intelligence models, significantly reducing their compute requirements and energy consumption.
According to Bertrand Charpentier, president and chief scientist officer at Pruna AI, the technology works “similar to a zip that compresses files, so they are cheaper, faster, and greener, and everyone can access and use those AI models.” The platform allows users to run their AI models through Pruna’s optimization engine, which renders them smaller, more cost-effective, and environmentally friendly across any hardware platform.
The technology spans multiple AI applications, including natural language processing, image processing, and audio systems. Pruna’s primary customers are midsize to large companies that operate their own AI models and face substantial compute bills. The startup’s business model is based on usage of the compressed models, which Charpentier describes as a “win-win” situation since the compressed versions are typically much cheaper to run than their non-compressed counterparts.
Strategic location advantages play a crucial role in Pruna’s success. Carl Svantesson, partner at Swedish investment firm EQT Ventures, noted that being based in both Paris and Munich is a significant advantage, stating that “the combination of the two ecosystems, with Paris and Munich, enables the possibility of hiring the best talent and software.”
The funding round attracted participation from Daphni, Motier, and Kima, along with high-profile angel investors including Roxanne Varza, Hervé Nivon, and Olivier Pomel. Charpentier identified strong investor appetite for solutions that make AI more affordable and sustainable, particularly given the ongoing challenges around access to compute resources and specialized chips called GPUs.
With the fresh capital injection, Pruna AI plans to double down on team expansion and further develop its compression technology. The startup has shared its 12-slide pitch deck that successfully secured the funding, providing insights into how it positioned its solution to address one of the AI industry’s most pressing challenges: the high cost and environmental impact of running large AI models.
Key Quotes
It’s similar to a zip that compresses files, so they are cheaper, faster, and greener, and everyone can access and use those AI models
Bertrand Charpentier, president and chief scientist officer at Pruna AI, explained the core functionality of their compression technology in simple terms, emphasizing the accessibility and sustainability benefits of their approach.
The combination of the two ecosystems, with Paris and Munich, enables the possibility of hiring the best talent and software
Carl Svantesson, partner at EQT Ventures which led the funding round, highlighted Pruna’s strategic advantage in operating across two major European tech hubs, giving them access to top-tier engineering talent.
Our Take
Pruna AI’s successful funding round represents a maturation of the AI industry, where efficiency and sustainability are becoming as important as raw performance. The startup is tackling a fundamental problem: as AI models grow larger and more powerful, they become prohibitively expensive to run. This creates a two-tier system where only well-funded organizations can afford cutting-edge AI.
What’s particularly interesting is the business model—charging based on usage of compressed models creates aligned incentives. The more Pruna saves customers on compute costs, the more value they deliver. This positions them well as AI adoption accelerates and companies seek to control spiraling infrastructure costs. The European base is also strategic, as the region increasingly focuses on sustainable and responsible AI development. Pruna could become essential infrastructure as regulations around AI energy consumption tighten globally.
Why This Matters
This funding round highlights a critical challenge facing the AI industry: the astronomical costs and environmental impact of running large AI models. As artificial intelligence becomes increasingly integrated into business operations, compute expenses have emerged as a major barrier to adoption, particularly for mid-sized companies. Pruna AI’s compression technology addresses this bottleneck by making AI models more accessible and sustainable.
The significance extends beyond cost savings. With growing concerns about AI’s carbon footprint and energy consumption, solutions that reduce computational requirements align with broader sustainability goals. This is particularly relevant as regulators worldwide scrutinize the environmental impact of AI infrastructure.
The strong investor interest, led by prominent European VC EQT Ventures, signals that AI efficiency and optimization represent a major investment theme. As the AI market matures, the focus is shifting from just building powerful models to making them practical and economical to deploy at scale. This trend could democratize AI access, enabling smaller companies to compete with tech giants who have unlimited compute budgets.
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Source: https://www.businessinsider.com/pruna-ai-models-compress-funding-pitch-deck-2024-11