PANews reported on December 19 that according to The Block, Fraction AI, a crypto and artificial intelligence startup focused on decentralized data annotation, has completed a $6 million Pre-Seed financing round, which was co-led by Spartan Group and Symbolic Capital, and other investors include Borderless Capital, Anagram, Foresight Ventures and Karatage. In addition, angel investors such as Polygon co-founder Sandeep Nailwal and NEAR Protocol co-founder Illia Polosukhin also participated and served as consultants.
Founded in February 2024, Fraction AI is committed to reshaping the data annotation process in a decentralized manner, using a hybrid approach that combines human insights with AI agents. Its platform mainly includes three types of participants: stakers who receive 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 through the native token FRAC (LLM based on the evaluation results of specific standards).
Fraction AI plans to launch the mainnet and native token FRAC at the end of the first quarter or the beginning of the second quarter of 2025. It has completed closed beta testing and is expected to launch public beta testing next month. At present, there are more than 60,000 test users. The company is currently developing based on Ethereum and plans to expand to NEAR and multiple Ethereum Layer 2 networks.
