Houston-based Allganize, founded by Changsu Lee, is taking its $35 million in investment funding and changing the game of AI on a global scale. Photo via Getty Images

It’s taken people some time, but most of society is finally doing a collective 180-degree flip on its once guarded view of artificial intelligence in favor of being open to the idea that it can help humankind in a myriad of positive ways.

That’s why Houston-based software development company Allganize recently secured $20 million in series B funding to propel its industry-leading AI answer bot, Alli.

The All-in-One LLM Enabler Platform, which intelligently responds to customers through natural chat conversation flows, while also enabling the automation of up to 80 percent of support tickets, allows customers to get serviced faster while improving employee productivity.

With the latest $20 million investment by InterVest and Murex Partners, that brings the total funding into Allganize to $35 million. That investor confidence will ultimately help catapult the company’s AI solutions to the next level and help target its planned Japanese Stock Exchange listing by 2025.

“We will lead the expansion of corporate-specific LLM app markets and accelerate the distribution of enterprise automation AI in USA, Korea, and Japan,” says Changsu Lee, CEO of Allganize. “We are dedicated to empowering companies to develop custom LLM applications, enabling practical tasks execution and work automation.”

From programmer to prototype

Allganize’s plans to go public in 2025 stems from Lee’s early ties to Japan. While Lee is originally from Korea, he got his start in Japan, where he was able to secure his first job as a programmer at a gaming company and years later the first investment for the first company he started, ABLAR.

“I'm originally from Korea and when I got a scholarship from the Japanese government, and I went to the research laboratory of Tokyo Institute of Technology, I was not able to speak Japanese at all,” Lee tells InnovationMap. “But that one year actually changed my life. I could speak Japanese while I was there, and I was able to learn a lot of Japanese cultures, and there in the social system, I became a big fan of Japan, and then after that, so I was really looking for an opportunity to do business with Japan, or in Japan.

“I was originally trying to start a company in Japan, and I started to work as a programmer in a gaming company, and at night time, and also the weekends, I was actually building a product to start a company," he continues. "So back then, that product name was ‘Search for You.’ It was every single person's search history, the trees, then if we can find somebody else who's already advanced, but pretty similar search tree, then I was thinking, we can probably, give better suggestions or the recommendations. This is future knowledge that you could probably expect to learn, and if we can have a million users, then we can leverage, those search histories from Google."

Changsu Lee is the CEO of Allganize. Photo via LinkedIn

From there, Lee built the prototype, while making the bulk of his decisions from Japan. Later, while back in Korea, he expanded his business into Japan and met the biggest VC of Japan at an event in Korea and gave a quick pitch of his company’s service. Ultimately, he got the funding and hired Allganize co-founder Yasuo Sato, who he’s been working with for more than 11 years now.

For Lee, it all comes back to where his first idea and mission was believed in and supported, and that place was Japan. Not surprisingly, the bulk of Lee’s customers are in Japan, and it was there that he began his AI journey, by cutting his teeth in machine learning.

“After changing the company name to 5Rocks, we were providing analytics and marketing automation solutions for mobile game companies,” says Lee. “So even back then, we were actually using machine learning, but it was not deep learning. We were using machine learning to predict every single gamer's remaining lifetime in the game. For example, how many days or how many months is this gamer going to stay in the game and how much money are they going to spend in the game for their game items?

“We were predicting this by using machine learning," he continues. "And after we were acquired by the mobile advertising company, I worked as the SVP of the platform there, and I actually got the opportunity to learn the deep learning.

If it’s possible to dig deeper into deep learning, that’s exactly what Lee did as the senior vice president of Tapjoy. Selling his first company and staying onboard in a much more limited role allowed Lee to have a sort of paid internship or technological rotation program into AI and deep learning, which he believed was going to completely change everything and, as a result, was to be the major foundational key to his next venture, Allganize.

Japanese IPO on the horizon

Fast forward to 2023 and the $35 million in investments, Lee and his team are aiming to expand the company’s existing customer base of over 200 enterprises and an IPO on the Tokyo Stock Exchange in 2025.

Take a quick look around and roll call currently known AI platforms. Google Duet, Microsoft Co-Pilot and, of course, ChatGPT quickly come to mind, right?

Spoiler alert: those are all descendants of Allganize’s Alli All-in-One LLM Enabler Platform, which it continues to enhance. Still, Lee and his team still find themselves having to reassure that AI is not the boogeyman movies like The Terminator or Ex Machina have made it out to be.

“I think the most important thing is in how we can leverage and utilize these AI tools,” says Lee. “And because, at the end of the day, it's still a tool, AI is great. It's really powerful. But it's still the tool for helping humans. For example, for white-collar knowledge workers, productivity is completely different when they are using the AI. AI is also more knowledge-focused, and you can answer all the questions that you have.”

Simply put, AI can add not only add to efficiency and productivity, but it can also answer questions before anyone can think to ask them and fill in the blanks to missing information that one didn’t know was missing or could think was missing.

“As powerful as that sounds, AI still can't replace people because people still have to direct it and guide it to where it needs to go,” says Lee. “And because AI's capability is becoming more and more powerful, it’s important for us to learn how to safely train the AI and how to make the good guidelines that we're using for AI.”

With Allganize focused on large language models, they assist businesses to leverage AI to enhance their employees’ knowledge recall and operational efficiency.

“I'm always saying the LLM model is just an engine of the car,” says Lee. “People are buying cars, people are not buying engines. Of course, the engine is important for the car's performance, but people are actually buying cars, not the engines. So, we are really focusing on what kind of application you really want to do in your organization by using LLM.

"And again, our ultimate focus is all the applications because this AI should be used in the daily life of the enterprise, which is the workflow," he continues. “We call them the LLM app. At the moment, the biggest LLM app is called the cognitive search. So when an employee or the customer is asking a question, then AI is understanding all these internal, the best amount of the documents and knowledge bases and databases and they can give comprehensive correct answers to the users. ... Then AI can actually give better answers and they can also give you another suggestion on what to do next. So, that is the biggest application.”

Additional applications include comparing labor agreements in the labor department or on the human resources side, screening several hundred resumes to find who is the best candidate for an open job requisition. Bonus point: it does all of this without the implicit bias that has been historically problematic for HR teams in their recruiting process.

Allganize is also able to create applications without traditional coding like Java and Python.

“Yeah, that is possible because of the LLM,” says Lee. “Because the LLM is such an amazing AI. So, it can handle most of the logics and data. It has been handled only by the software code. But now, the LLM doesn't cover these things. And so users, like somebody who wants to build any of those complicated workflow automations, they don't really need to write a code and they can just use LLM. And then they can just do visual flowcharts, like the old way. And then that is our app. And then all these things are done just like magic.”

Certainly, there’s been quite a bit of “magic” coming from Allganize and that’s all because of Lee and his innate ability to identify problems that need to be solved before they develop and create applications and solutions to address them ahead of time.

“I think two main things are necessary to get to this point with Allganize,” says Lee. “The first thing is expertise in AI, and the second thing is real domain knowledge.

“And I have been working in enterprise, including telecommunications and gaming a little bit more than 20 years. So, how enterprise is working and how the workflow is being defined and how the company and the teams are collaborating, and I have been with it for 20 years. In my academical background, it's all about AI. And I'm writing a code and seeing the very technical details of all these AI models.”

Lee learned a lot during and after selling his first company that he founded, which put him on the correct path to get the funding needed to realize his dream for Allganize.

“I really want to make this a company which can go long and then big,” says Lee. “And that's why we are working on going public. We are doing business in the U.S., Japan, and South Korea. And at the moment, Japan is our biggest market. So, we are going to go public in Japan in 2025. And from that point, we're going to accelerate our global expansion.”

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million. Graphic via allganize.ai

Houston AI company raises $35M, plans for Japanese IPO

fresh funding

A Houston tech startup with an artificial intelligence technology has announced it's raised two rounds of funding as it plans to continue developing its product and IPO in Japan.

Allganize recently closed a $20 million series B round of funding, bringing its total amount raised to $35 million, according to the company. Allganize developed Alli, an all-in-one platform for enabling large language models, that's used by over 200 enterprise and public companies globally, including Sumitomo Mitsui Banking Corporation, Nomura Securities, Hitachi, Fujitsu, and KB Securities.

The funding will go toward expanding corporate-specific LLM app markets and expanding enterprise automation AI in the United States, Korea, and Japan. The company has a goal of listing on the Japanese Stock Exchange by 2025.

"This investment accelerates our journey towards global expansion and achieving a milestone of listing on the Japanese stock exchange by 2025. Our focus is on leveraging LLMs to revolutionize work productivity. We are dedicated to empowering companies to develop custom LLM applications, enabling practical tasks execution and work automation,” Changsu Lee, CEO of Allganize, says in a news release.

In the latest round, InterVest and Murex Partners joined existing investors ATINUM Investment and Stonebridge Ventures.

"Allganize's generative AI-based services have garnered acclaim for their technological excellence and practicality among global financial firms. We foresee substantial revenue growth following this investment," Kang Dong-min, vice president of Murex, says in the release.

Allganize was founded in 2017 in California and has offices in Houston, Seoul, and Tokyo. The company's customers range from the insurance and financial services to oil and gas, construction, and more.

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Pharma giant considers Houston for $1B manufacturing campus

in the works

Another pharmaceutical giant is considering Houston’s Generation Park for a manufacturing hub.

According to a recent filing with the Texas Jobs, Energy, Technology and Innovation (JETI) program, Bristol Myers Squibb Co. is considering the northeast Houston management district for a new $1 billion multi-modal pharmaceutical manufacturing campus.

If approved, the campus, known as Project Argonaut, could create 489 jobs in Texas by 2031. Jobs would include operations technicians, engineering roles, administrative and management roles, production specialists, maintenance support, and quality control/assurance. The company predicts annual average wages for these positions to be around $96,000, according to the filing.

The project currently includes the 600,000-square-foot facility, but according to the filing, Bristol Myers Squibb “envisions this site growing in scale and capability well beyond its opening configuration."

The Texas JETI program offers companies temporary school property tax limitations in exchange for major capital investment and job creation. E.R. Squibb & Sons LLC applied for a 10-year tax abatement agreement in the Sheldon Independent School District.

The agreement promises a $ 1 billion investment. Construction would begin in 2027 and wrap in 2029.

“The proposed project reflects [Bristol Myers Squibb Co.’s] enduring commitment to bringing innovative medicines to patients and ensuring the long-term supply reliability they depend on,” the filing says. “The proposed project is purpose-built to support and manufacture medicines spanning multiple therapeutic areas and modalities, positioning the site as a long-term launch and commercial campus for decades to come. These medicines will provide therapies to the [Bristol Myers Squibb Co.’s] patients located in markets both nationally and internationally.”

The Fortune 100 company is considering 16 other cities for the new manufacturing facility in the Central and Eastern markets in the U.S. According to the Houston Chronicle, Bristol Myers Squibb Co is still in the “evaluation process” for its potential manufacturing site.

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Read more here.

Houston health tech co. lands NIH grant for AI cancer prediction tool

fresh funding

Houston-based CellChorus and Stanford Medicine were recently awarded a Phase I Small Business Innovation Research grant for the company's AI platform to test how certain cancer patients will respond to therapies.

The funding comes from the National Cancer Institute of the National Institutes of Health. According to a filing, the grant totaled just under $400,000.

CellChorus, which spun out from the University of Houston’s Technology Bridge, has developed TIMING (Time-lapse Imaging Microscopy In Nanowell Grids), which analyzes the behavior of thousands of individual immune cells over time and can identify early indicators of treatment success or failure.

The company will work with Stanford's Dr. David Miklos and Dr. Saurabh Dahiya, who have built the Bone Marrow Transplantation and Cell Therapy Biobank. The biobank manages and stores biological samples from patients treated at their clinic and in clinical trials.

"Predicting which patients will achieve durable responses after CAR-T therapy remains one of the most important challenges in the field,” Miklos said in a news release. “We aim to uncover functional cellular signatures that can guide treatment decisions and improve patient outcomes.”

The project will specifically profile cells from patients with relapsed/refractory large B-cell lymphoma (r/rLBCL). According to CellChorus, only about half of r/rLBCL patients who receive CAR-T therapy "achieve a durable, long-term remission." Others do not respond to therapy or experience relapse.

“The sooner we know whether a cancer therapy is working, the better. To maximize patient benefit, we need technology that can provide a robust and early prediction of response to therapy. The technology needs to be scalable, cost-efficient, and capable of rapid turnaround times,” Rebecca Berdeaux, chief scientific officer of CellChorus, added in the release. “We are excited to work with Drs. David Miklos and Saurabh Dahiya and their colleagues on this very important project.”

CellChorus has previously received SBIR grants from federal agencies, including a $2.5 million award in 2024 from its National Center for Advancing Translational Sciences (NCATS) and a $2.3 million SBIR Fast-Track award from the National Institute of General Medical Sciences in 2023.

Houston museum showcases America's founding documents in rare exhibit

Experience History

As the United States prepares to celebrate its 250th birthday, Houstonians have a chance to see rare documents from the founding of the nation. Freedom Plane National Tour: Documents That Forged a Nation, presented by the National Archives Foundation, will be on display at the Houston Museum of Natural Science through Monday, May 25.

The collection includes a rare engraving of the original Declaration of Independence; official Oaths of Allegiance signed by George Washington, Aaron Burr, and Alexander Hamilton; a draft of the Bill of Rights; the Treaty of Paris, the documented that recognized America's independence from Great Britain; and the tally of votes approving the Constitution.

The National Archives specifically chose Houston as one of only eight cities in the country to host the exhibit as a means to help the documents reach a wider audience outside of the main hub of semiquincentennial events in New England and the Washington, D.C. area.

"One of the things we decided when we put the tour together because we wanted to be off the East Coast," said Patrick Madden, CEO of the National Archives Foundation, who was onsite for the exhibit's opening in Houston. "There's a lot of 250th celebration stuff happening in the original 13 colonies. How do we get it to major markets where larger numbers of people can see it? So in the case of Houston, obviously, [is a] major market in this part of the country, but also we've partnered with the museum twice before with National Archives exhibits, so we knew that they would be up to the task of handling the exhibit and the crowds."

The star of the collection is a rare engraving of the original Declaration of Independence. Secretary of State and future president John Quincy Adams commissioned 200 exact replicas of the document from engraver William J. Stone in 1823. Less than 50 now remain. Madden joyfully pointed out that there are errors in this document, a potent reminder that the men who forged a nation made mistakes.

"There's a couple of typos in it where they had to make corrections," said Madden. "So even the founders, you know, they're all human. That resonates because here these people are making this move against the most powerful nation in the world and putting their lives on the line for a country based on ideas."

Other impressive parts of the collection include official Oaths of Allegiance signed by George Washington, Aaron Burr, and Alexander Hamilton, as well as one of the drafts of the Bill of Rights. Many states would not ratify the Constitution until certain rights were included in the document, leading to Washington going on a national tour assuring state leaders enshrining protections was first on the list. The draft copy on display specifically shows the First Amendment in progress.

Houston is the fourth stop on the exhibition's tour, which will take the documents to Denver, Miami, Dearborn, and Seattle through the summer. Freedom Plane is just one part of a larger patriotic celebration at the HMNS, which includes a film series celebrating American science and culture and general Americana decoration throughout the main hall.

Admission to Freedom Plane is free to the public, but separate from general admission to the museum. Space is limited, and passes are available on a first-come, first-serve basis. Non-members should expect long waits or the possibility that the day's passes are sold out. Only museum members can reserve passes for specific times. Flash photography is prohibited due to the fragile nature of the documents.

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This article originally appeared on CultureMap.com.