TLDC
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Paper Instruments develops frontier AI models and tooling for knowledge work, including agent-first office document libraries and models tailored for white-collar professional services.
Also known as Paper Instruments · The LLM Data Company · TLDC
Founders & leadership
Investors · 1
Company profile
researched Aug 2026TLDC (The LLM Data Company, also listed as Paper Instruments) is a San Francisco company founded in 2025 that builds evaluation tooling for language models and agents and post-trains models for knowledge work. Its initial product, doteval, is a workspace for authoring, versioning and executing evaluations as code against a YAML schema. It provides an editor-style interface comparable to a code IDE, AI-generated grading diffs in place of manual scoring, side-by-side comparison of eval runs across model checkpoints and prompts, and fine-grained rubrics with aligned graders. Eval specifications can be exported in one click for use as reward datasets in GRPO-style reinforcement learning or reinforcement fine-tuning, linking measurement directly to post-training.
The company frames the problem as the unreliability of generic LLM judges and manual, spreadsheet- or JSON-based evaluation workflows, which leave teams unable to tell whether a model upgrade or prompt change is a net improvement, and which fail to supply the well-specified reward datasets that modern RL techniques require. It has worked with frontier AI teams to benchmark complex model tasks, and secondary coverage reports use in legal, technical and safety-critical workflows.
Under the Paper Instruments name, the company also trains and releases domain models. In March 2026 it announced Kos-1 Lite, a medical reasoning model reported at 46.6% on HealthBench Hard and 66.6% on HealthBench, described as prioritizing clinical accuracy, reduced sycophancy, triage and deferral, and bedside manner, and as serving at a fraction of the cost of models above one trillion parameters.
Founding story
Founded in 2025 by Daanish Khazi (Founder/CEO), Gavin Bains and Joseph Besgen. Secondary coverage describes all three as former Traba engineers or employees, with prior experience at Tesla and Meta (Khazi), and Honey and Roland Berger (Besgen).
Business model
Developer-first software sold on a subscription basis, targeted at applied AI teams, alongside paid engagement work benchmarking performance for frontier AI teams and building evaluation datasets. Secondary coverage describes direct sales into mid-market enterprises with evaluation needs.
Subscription-based developer platform, per secondary coverage.
Traction
Works with frontier AI teams on benchmarking complex model tasks; secondary coverage from July 2025 reports usage by Perplexity, Diode and Cubic in legal, technical and safety-critical workflows. Team size listed at three. Its Kos-1 Lite model reported the top HealthBench Hard score among the compared models at 46.6%.
Latest developments
On 3 March 2026 the company announced Kos-1 Lite, its first medical reasoning model, reporting a state-of-the-art 46.6% on HealthBench Hard and 66.6% on HealthBench, trailing only GPT-5 High on the latter, and made the model available to try interactively.
▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies
Market position
Positioned in AI infrastructure and evaluation tooling. Secondary coverage names Pi Labs and Haize Labs as competitors, along with internally built lab tooling, and characterizes the company as early-stage with early production usage among named AI companies.
The company positions its tooling as evaluation-as-infrastructure rather than a results viewer: structured, versioned, reusable eval specifications that can be authored collaboratively across engineering, product and legal, and then reused directly as reinforcement learning reward signals. For its medical model, it argues that general-purpose LLMs trade off groundedness and non-sycophancy for instruction-following on tasks such as coding, and that a domain-specific reasoning model can reach higher clinical benchmark scores at lower serving cost than much larger frontier models.
Technology
Evals-as-code on a YAML schema with versioning across model checkpoints, AI-generated diffs, aligned graders and fine-grained rubrics, plus export of eval specs as reward datasets for GRPO-style reinforcement learning and reinforcement fine-tuning. The company also post-trains large language models, releasing Kos-1 Lite, a reasoning model for clinical use evaluated on OpenAI's HealthBench, a benchmark built with 262 physicians across 60 countries using open-ended conversations.
Go-to-market
Direct engagement with applied AI and frontier model teams, including early access to doteval, help building evaluation datasets, and support for teams adopting GRPO or reinforcement fine-tuning; inbound via a founders contact address. Model releases are announced through the company's research blog with an interactive demo.
Teams building, fine-tuning or operating LLMs at scale, including frontier AI labs, product organizations choosing between models, AI startups building models for regulated industries, and research and open-source teams; secondary coverage cites mid-market enterprises and applied AI teams, with reported users including Perplexity, Diode and Cubic.
Geography
Headquartered in San Francisco, California.
History
The company was founded in 2025 in San Francisco by Daanish Khazi, Gavin Bains and Joseph Besgen and joined a 2025 Y Combinator batch (listed as Spring 2025 by YC, referenced as S25 elsewhere), with Diana Hu as primary partner. It launched publicly as The LLM Data Company with the doteval eval workspace and worked with frontier AI teams on benchmarking complex model tasks. The entity is also listed under the name Paper Instruments, described as post-training LLMs to accelerate knowledge work with open-source frontier models. In March 2026 it announced Kos-1 Lite, a medical reasoning model.
Risks & controversies
Secondary coverage flags early-stage go-to-market execution, heterogeneous customer requirements across domains, competition from evaluation tooling built internally at large labs, and the tension between flexibility and simplicity in product design.
Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Competitors · 9
by search overlapCompanies competing with TLDC for the same Google search keywords, organic and paid, via search-intersection analysis.
Timeline · 3
launches, deals, and filingsPaper Instruments announced Kos-1 Lite, its first medical reasoning model, reporting 46.6% on HealthBench Hard and 66.6% on HealthBench, with an interactive demo. The company positions the model around clinical accuracy, reduced sycophancy, triage and deferral behavior, and lower serving cost than trillion-parameter frontier models.
The company took part in a 2025 Y Combinator batch (listed as Spring 2025 on the YC company page and as S25 in secondary coverage), with Diana Hu as primary partner.
The company launched doteval, a workspace for writing, versioning and executing evals-as-code against a YAML schema, with AI-generated diffs, run comparison across checkpoints, and one-click export of eval specs as reinforcement learning training sets.
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
▸Research sources · 8
primary sources listed
- The LLM Data Company: Frontier models for critical domains | Y Combinatorycombinator.com · web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does TLDC do?
- San Francisco AI company building eval tooling for LLMs and agents and post-training domain models for knowledge work.
- Who founded TLDC?
- TLDC was founded by Daanish Khazi.
- Who are TLDC's investors?
- TLDC's investors include NextGen Venture Partners.





