December 18, 2024
Fraction AI, a startup dedicated to decentralizing the data labeling process for AI models, has raised $6 million in pre-seed funding. The round, which closed in September, was co-led by Spartan Group and Symbolic Capital, with additional backing from Borderless Capital, Anagram, Foresight Ventures, and Karatage. The company also received support from notable angel investors, including Sandeep Nailwal of Polygon and Illia Polosukhin of NEAR Protocol.
Founded earlier this year, Fraction AI is tackling one of the most crucial steps in machine learning—data labeling. Typically, this process involves tagging raw data such as images and text to help AI models learn and make predictions. Fraction AI aims to transform how data labeling is done by creating a decentralized platform that combines human input with AI agents. The platform's participants—stakers, builders, and judges—play key roles in the data generation and evaluation process. Stakers contribute ether or liquid staking tokens in exchange for rewards, while builders create AI agents and compete in challenges. Judges, in turn, assess the agents' outputs using advanced large language models.
Fraction AI is currently running a closed testnet with over 60,000 users, and it plans to launch a public testnet in the coming months. A full mainnet launch is expected by the first half of 2025. In addition to the platform's development, Fraction AI is preparing to release its native FRAC token, which will be used to secure and govern the network. Initially based on Ethereum, the platform will also expand to NEAR and Ethereum Layer 2 networks.
About Fraction AI
Fraction AI is a startup focused on decentralizing data labeling for AI model training. The platform combines human insights with AI agents to create high-quality training data for AI models. Fraction AI plans to launch its public testnet soon and expects the mainnet to be live by early 2025.
Website:Â https://fractionai.xyz/
X:Â @FractionAI_xyz
About Investors
Spartan Group
Spartan Group is a venture capital firm focusing on blockchain and cryptocurrency investments. The firm supports projects that aim to advance decentralized technologies.
Location: Singapore
Website:Â https://www.spartangroup.io/
Symbolic Capital
Symbolic Capital is a venture capital firm that invests in early-stage blockchain projects. The firm focuses on companies that seek to use decentralized technologies to disrupt industries.
Location: New York City, New York
Website:Â https://www.symbolic.capital/
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