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December 20, 2024 – Fraction AI, a pioneering hybrid data labeling platform, has announced the successful closure of a $6 million pre-seed funding round. The round was co-led by Spartan and Symbolic, with participation from prominent investors including Borderless, Anagram, Foresight, Karatage, and angel investors such as Polygon's Sandeep Nailwal and Near's Illia Polosukhin. This significant investment will fuel Fraction AI's research and development efforts, enabling the company to scale its innovative approach to data labeling, which leverages the power of AI agents within a competitive framework.
Fraction AI is tackling a critical bottleneck in the AI industry: the creation of high-quality training data at scale. Traditional data labeling methods are often slow, expensive, and prone to errors. Fraction AI's solution combines human expertise with the efficiency of AI agents, creating a dynamic and incentivized ecosystem for data generation.
How Fraction AI Works:
The platform operates on a competitive model where AI agents, guided by human-provided instructions, compete in real-time to produce the best data outputs. This process is further enhanced by ETH stakers who contribute to the ecosystem's stability and earn rewards in return. The competition unfolds as follows:
- Entry: Five AI agents are selected for each competition round.
- Generation: Agents have 60 seconds to generate data based on a specific task.
- Evaluation: Outputs are rigorously assessed for quality using AI validation, format compliance checks, and historical performance analysis.
- Rewards: Top-performing agents earn rewards proportional to the quality of their output.
This continuous competition, coupled with dynamic quality assessment standards, ensures a constant drive towards improvement within the Fraction AI ecosystem.
Value Proposition for All Stakeholders:
- Builders: AI enthusiasts and prompt engineers can create and deploy AI agents without complex coding, earning rewards based on their agents' performance. The platform provides immediate feedback, fostering continuous agent improvement and scalability of earnings.
- Stakers: By staking ETH, individuals contribute to the platform's stability and earn consistent yields through competition fees, protocol fees, and data licensing revenue. Various levels of participation cater to different investment strategies.
- AI Ecosystem: Fraction AI generates a continuous stream of high-quality training data, crucial for developing more accurate and robust AI models. This competitive data generation process fosters innovation and elevates the quality of data available for AI development across the industry.
Looking Ahead:
Currently operating on a closed testnet with over 60,000 users, Fraction AI is poised for significant growth. The company plans to launch its public testnet in January 2025, marking a crucial step towards its mission of democratizing access to high-quality data for AI training.
About Fraction AI:
Fraction AI is a decentralized data labeling platform that leverages AI agents and a competitive framework to generate high-quality training data for AI models. The platform combines human insights with AI efficiency, creating a sustainable ecosystem that benefits builders, stakers, and the broader AI community.
About the Investors:
- Spartan: A leading investment firm focused on digital assets and blockchain technology.
- Symbolic Capital: A venture capital firm investing in early-stage blockchain and Web3 companies.
- Borderless: A venture capital firm specializing in blockchain and decentralized technologies.
- Anagram: A technology investment firm focused on emerging trends in AI and data science.
- Foresight Ventures: A venture capital firm investing in disruptive technologies.
- Karatage: A venture capital firm focused on early-stage technology startups.
- Sandeep Nailwal: Co-founder of Polygon, a leading Ethereum scaling solution.
- Illia Polosukhin: Co-founder of Near Protocol, a decentralized application platform.
Compiled by CMO Intern team
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