Startup raises $6.5M to optimize websites for AI chatbot discovery

The Prompting Company has raised $6.5 million in seed funding to help brands optimize their content for AI-driven product discovery through generative engine optimization (GEO). The Y Combinator-backed startup addresses a growing shift where consumers increasingly turn to AI chatbots rather than traditional search engines for product recommendations, with retailers potentially seeing up to 520% more AI-driven traffic in 2025.

What you should know: The four-month-old startup is already serving major clients and processing millions of monthly visits through AI-optimized content.

• Current customers include Rippling, Rho, Motion, Vapi, Fondo, Kernel, and Traceloop, plus one Fortune 10 company.
• The platform hosts about half a million pages and drives double-digit millions in monthly traffic to client sites.
• Founded by Kevin Chandra, Michelle Marcelline, and Albert Punama, who previously built Y Combinator-backed companies Typedream and Cotter.

How it works: The platform creates AI-friendly versions of websites specifically designed for machine consumption rather than human browsing.

• It identifies purchase-intent queries by probing AI models to understand what questions agents are asking.
• Creates structured content that answers those questions and automatically routes AI agents to optimized pages.
• Eliminates human-focused elements like navigation bars, pop-ups, and marketing copy that confuse AI systems.

In plain English: Think of it like creating two versions of a restaurant menu—one beautifully designed for human diners with photos and descriptions, and another simple text file for delivery apps to read quickly and accurately.

The business model: The company uses a subscription approach based on tracking AI interactions and hosting optimized content.

• Customers pay based on the number of prompts tracked and pages hosted on the platform.
• The startup is exploring advertising and conversion-driven models as AI agents become capable of completing purchases.

The big picture: AI agents are becoming the dominant traffic source for websites, fundamentally changing how products get discovered and purchased.

• “Over the past year, most of the growth on websites has come from AI bots, not people,” CEO Chandra explained.
• Unlike traditional SEO that relies on paid keywords and search rankings, GEO surfaces products organically based on conversational relevance.
• Emerging protocols from Google and OpenAI’s partnership with Stripe could enable AI agents to complete entire purchase transactions autonomously.

Why this matters: As AI becomes the primary touchpoint for product discovery, brands risk invisibility if they don’t adapt their marketing strategies for machine consumption.

• A recent shopping report indicates Americans will increasingly use large language models for gift and deal discovery this holiday season.
• The shift represents a fundamental change in the purchasing funnel, where AI agents may eventually handle transactions without human involvement.
• Companies that fail to optimize for AI discovery could lose significant market share as consumer behavior evolves.

What they’re saying: Industry leaders recognize the urgency of adapting to AI-driven discovery channels.

• “If your product isn’t discovered or cited in ChatGPT, you’re ngmi,” said Arnav Sahu, partner at Peak XV Partners.
• “Most businesses still design websites only for humans, but the fastest-growing segment of users on the internet today is AI agents and they need a completely different interface,” Chandra noted.

Who else is involved: The seed round attracted prominent investors focused on AI infrastructure and enterprise tools.

• Peak XV Partners, Base10, Y Combinator, and Firedrop led the funding round.
• Angel investors include Logan Kilpatrick, a former OpenAI executive.
• The startup is collaborating with NVIDIA on next-generation AI search capabilities.