YC Startup Codag Launches to Compress Agent Context 3x and Monitor Tool Usage

ycombinator · x · 2026-08-18

Y Combinator S26 startup Codag launches as a compression and control layer for agent tools. It addresses the issue of agents wasting tokens on repetitive output during tasks like logging, searching, and building. Codag reduces input token usage by approximately 3x at answer parity and provides visibility into agent tool usage across providers, helping teams track costs and waste. Over 90 engineering organizations are currently using it.

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