Contextual AI, an enterprise AI leader, has launched the Contextual AI Platform as a Snowflake Native App on the Snowflake Marketplace.

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More. Contextual AI unveiled its grounded language model (GLM) today, claiming it delivers the highest factual accuracy in the industry by outperforming leading AI systems from Google, Anthropic and OpenAI on a key benchmark for truthfulness.The startup, founded by the pioneers of retrieval-augmented generation (RAG) technology, reported that its GLM achieved an 88% factuality score on the FACTS benchmark, compared to 84.6% for Google’s Gemini 2.0 Flash, 79.4% for Anthropic’s Claude 3.5 Sonnet and 78.8% for OpenAI’s GPT-4o.While large language models have transformed enterprise software, factual inaccuracies — often called hallucinations — remain a critical challenge for business adoption. Contextual AI aims to solve this by creating a model specifically optimized for enterprise RAG applications where accuracy is paramount.“We knew that part of the solution would be a technique called RAG — retrieval-augmented generation,” said Douwe Kiela, CEO and cofounder of Contextual AI, in an exclusive interview with VentureBeat. “And we knew that because RAG is originally my idea. What this company is about is really about doing RAG the right way, to kind of the next level of doing RAG.”The company’s focus differs significantly from general-purpose models like ChatGPT or Claude, which are designed to handle everything from creative writing to technical documentation