Dili, a startup focused on AI-driven compliance for infrastructure projects, announced on Thursday that it raised $15 million in a Series A round. Combined with a prior $6.7 million seed round, the company has now raised a total of $21.7 million. The Series A was led by Khosla Ventures, with participation from Allianz, Rebel Fund, Darren Bechtel of Brick and Mortar Ventures, and Garry Tan of Y Combinator. Dili was part of Y Combinator’s Summer 2023 cohort.
Why the issue matters
The rapid rollout of new data centers, clean energy installations and related construction projects in the U.S. creates a dense regulatory environment. Many of these projects are subject to overlapping wage, apprenticeship and safety rules tied to federal funding. Anand Chaturvedi, Dili’s co-founder and CEO, cited the Davis–Bacon rules as an example, under which the Department of Labor can set prevailing wages for certain projects. Separate prevailing wage and apprenticeship (PWA) rules apply to clean energy projects funded under the Inflation Reduction Act (IRA), and various OSHA or EPA requirements may also apply depending on the work. Chaturvedi warned that non-compliance can lead to multimillion-dollar fines for projects.
Technical approach
To avoid relying on large language models for final decisions, Dili uses a hybrid architecture. Contemporary AI models are applied in the company’s data layer to convert unstructured documents — internal company files, vendor documents, ERP records and payroll data — into structured data. Once structured, a deterministic, rules-based engine evaluates the information against the complex but relatively static compliance requirements.
According to Chaturvedi, this approach eliminates much of the fuzziness associated with LLMs in critical compliance outcomes. When the pipeline functions as intended, tasks that previously required a full day of manual work can be completed in minutes. "Imagine being able to read across the entire context of a company’s internal documents, all of their vendors’ documents, all of their ERP information, all of their payroll systems information, and then draw out the data that you need specifically for reporting or compliance," he explained.
Market traction and business model
Dili says the system is already in use across roughly 700 projects, spanning manufacturing facilities to data centers. Approximately half of those projects use Dili as an in-house software tool, while the other half outsource the full compliance process to Dili under a contractor model. The company supports both engagement types, though Chaturvedi expects the industry to trend toward bringing these capabilities in-house over time as software and AI replace portions of professional services workflows.
Conclusion
With $21.7 million in funding, Dili is positioning itself to help companies manage the complex regulatory requirements that come with federally funded and privately financed infrastructure projects. Its model combines AI-driven data extraction with deterministic rule engines to reduce manual effort and the risk of costly compliance errors across hundreds of active projects.
