Fraction AI
Category: AI Agents
A platform that empowers users to train and own their own AI models through a competitive, decentralized ecosystem. Fraction AI was founded in 2023. The company is led by Shashank Yadav. Based in San Francisco, CA, USA. Team size: 8. Total funding raised: $6 million. Latest round: Pre-seed, $6.0M, 2024-12, led by Spartan Group. Key investors include Borderless Capital, Anagram, Foresight Ventures, Karatage.
- Founded
- 2023
- Headquarters
- San Francisco, CA, USA
- Team size
- 8
- Total funding
- $6 million
Value proposition
Democratizes AI ownership by decentralizing data labeling and model training through competitive, self-improving ecosystem dynamics.
Products and solutions
Competitive AI agent platform, Crowdsourced data labeling system, FRAC token ecosystem for incentivization
Unique value
Decentralized, self-improving AI ecosystem where models evolve through competition and real-world feedback.
Target customer
Individuals and organizations seeking to develop specialized AI models
Industries served
Technology, Healthcare, Marketing
Technology advantage
Integrates human insights with AI agent competitions to generate and refine training data at scale.
How they differentiate
Enables users to train and own AI models via a decentralized, competition-based system, contrasting traditional centralized data annotation methods.
Main competitors
Dataforge, FastLabel
Key partnerships
Polygon (via advisor Sandeep Nailwal), NEAR Protocol (via advisor Illia Polosukhin)
Major milestones
Closed testnet launch with 60,000 users $6 million pre-seed funding round Plans for public testnet and mainnet launch in early 2025
Growth metrics
Over 60,000 users on the closed testnet
Market positioning
Positioned as a democratizing force in AI by leveraging decentralized technology and competitive innovation to disrupt traditional AI data labeling.
Geographic focus
Global, with a strong focus on the US market
About Shashank Yadav
IIT Delhi Computer Science graduate. Worked on core machine learning teams at Goldman Sachs and Microsoft, applying AI to quantitative trading in hedge funds. Previously worked at IBM and gained expertise in financial AI systems before founding Fraction AI to democratize AI ownership.
Official website: https://fractionai.xyz/