PANews reported on December 19, according to The Block, that Fraction AI, a startup focused on decentralized data labeling in crypto and artificial intelligence, has completed $6 million in Pre-Seed financing. 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 Polygon co-founder Sandeep Nailwal and NEAR Protocol co-founder Illia Polosukhin participated and serve as advisors.
Fraction AI was established in February 2024, dedicated to reshaping the data labeling process through decentralization, employing a hybrid approach that combines human insights and AI agents. Its platform primarily 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 (evaluating LLM results based on specific criteria).
Fraction AI plans to launch its mainnet and native token FRAC by the end of Q1 2025 or early Q2, having completed closed testing, with public testing expected next month, currently with over 60,000 test users. The company is developing on Ethereum and plans to expand to NEAR and multiple Ethereum Layer 2 networks.
