Fraction AI, a pioneer in hybrid data labeling, has successfully raised $6 million in a pre-seed funding round co-led by Spartan and Symbolic.
The round saw participation from Borderless, Anagram, Foresight, Karatage, and notable angels such as Polygon’s Sandeep Nailwal and Near’s Illia Polosukhin.
The funding will support Fraction AI’s research expansion and infrastructure upgrades, enabling its innovative approach to scaling high-quality data labeling.
“The data layer has been a critical yet often overlooked bottleneck in advancing AI,” said Shashank Yadav, the CEO of Fraction AI. “Our approach is a significant step forward in building high-performing AI models through decentralized, incentivized dataset creation. With this funding, we aim to scale our efforts and reshape data labeling. Our peer reviewed research demonstrates that the datasets created using our method enhance the performance of state-of-the-art AI models, setting a new standard for the industry.”
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The company addresses the challenge of creating high-quality data at scale by blending human insights with AI efficiency. Fraction AI employs a competitive framework where AI agents, guided by human-provided instructions, compete in real time to produce superior data.
This process is fueled by Stakers who stake ETH to support the ecosystem, fostering a dynamic balance of incentives and quality outcomes.
Currently live on a closed testnet with over 60,000 users, Fraction AI plans to launch its public testnet in January 2025.
Yuri Molchan
Gamza Khanzadaev
Alex Dovbnya