Washougal Startup Resect AI Exits Stealth With $25M to Intercept LLM Hallucinations Mid-Generation

Resect AI, based in Washougal, WA, emerged from stealth with $25M from private-equity investors to commercialize patented in-stream tech that observes model activations in real time and modifies behavior before a hallucination completes, generating an audit trail for enterprise compliance. Co-founders are CEO Kevin Owens, CAIO Tim Walton, COO Tyler Gerber and CPMO Tommy Lofgren; the company plans an open-source release plus an enterprise product suite and aims for 50 headcount by year-end.