According to PANews on December 19, The Block reported that Fraction AI, a startup focused on decentralized data labeling in crypto and artificial intelligence, has completed a $6 million Pre-Seed funding round. This round was co-led by Spartan Group and Symbolic Capital, with other investors including Borderless Capital, Anagram, Foresight Ventures, and Karatage. Additionally, angel investors such as Sandeep Nailwal, co-founder of Polygon, and Illia Polosukhin, co-founder of NEAR Protocol, also participated and serve as advisors.
Fraction AI was established in February 2024, dedicated to reshaping the data labeling process through a decentralized approach, employing a hybrid method that combines human insights with AI agents. Its platform mainly includes three types of participants: stakers who earn rewards by staking ETH or liquid staking tokens (such as stETH), developers who create AI agents and participate in challenges, and reviewers who participate in evaluations using the native token FRAC (assessing the results based on specific criteria using LLM).
Fraction AI plans to launch its mainnet and native token FRAC by the end of Q1 or the beginning of Q2 in 2025, and has completed closed testing. Public testing is expected to launch next month, with over 60,000 testing users currently in place. The company is currently developing on Ethereum and plans to expand to NEAR and multiple Ethereum Layer 2 networks.
