Web3 protocol receives $2.3M boost to decentralize AI

Web3 protocol announced $2.3 million pre-seed funding to develop a verification network using a proof of inference mechanism.

Inference Labs announces a $2.3 million pre-seed funding round to focus on developing a network for zero-knowledge verification with Proof-of-Inference for AI.

As the global integration of artificial intelligence (AI) accelerates, concerns are growing regarding its potential for monopolization and manipulation. Experts think AI technology must adhere to the principles of freedom of expression and inclusivity to make the world a “more equitable place.”

Aware of AI’s potential risks, such as discrimination or algorithmic bias, the Web3 community advocates for accessible technologies that encourage open participation and prevent the concentration of power.

Democratization of AI

Inference Labs is leveraging Web3’s transformative potential to foster a decentralized, transparent and secure environment where AI can thrive. The company is committed to making AI more decentralized, democratized and self-sovereign.

To put its ideals into practice, Inference Labs announced a $2.3 million pre-seed funding round led by Digital Asset Capital Management, Delphi Ventures and Mechanism Capital. The funding attracted a diverse group of investors, including Big Brain Holdings, BitScale Capital, Edessa Capital, ID Theory and Metropolis DAO.

🚀 Exciting News! Inference Labs has raised $2.3 million in pre-seed funding to bring revolutionary changes to AI with Proof-of-Inference, starting with liquid restaking & $TAO. Thank you to all our amazing investors for believing in our vision! #bittensor #decentralizedAI pic.twitter.com/xCoPzIkri9

— Inference Labs (@inference_labs) April 15, 2024

Inference Labs emphasized that this investment will optimize its innovative approaches to efficient AI verification and catalyze the ecosystem by helping the team grow and accelerate product development.

Inference Labs’ team has more than 30 years of startup experience combined. Source: Inference Labs

Proof of Inference

With Omron, Inference Labs blends zero-knowledge cryptography and advanced machine learning with Proof-of-Inference. Proof-of-Inference allows miners to provide predictions along with ZK proofs to ensure computational integrity, confirming their predictions were run on a specific model directly on the blockchain.

By rewarding miners who deliver the most accurate predictions and verifiable models, the subnet ensures optimal performance for its use cases. Inference Labs aims to enhance the Bittensor economic system by introducing a market-driven approach to incentivize miners based on their performance and the volume of on-chain verifiable transactions.

Merging allocation strategies and AI

Additionally, Inference Labs introduced Omron.ai to address the complex challenge of optimizing staked allocations across Actively Validated Services (AVS) through the application of artificial intelligence (AI).

Omron offers a practical solution to selecting the most advantageous AVS among potentially tens of thousands of options by considering a variety of risk factors, including changes in AVS rewards as more operators enter the market and their effects on risk-adjusted yields. As Omron begins to receive payments and slashing data, the subnet will be well-positioned to integrate this real-time data, ensuring that these models provide a more accurate depiction of yield.

Omron allows users to stake their digital assets like Ether (ETH) and earn rewards through their choice of Liquid Restaking (LRT) protocol. For example, Renzo converts staked ETH or liquid staking tokens (LSTs) into a new type of tradable token that continues to earn rewards. These tokens are also used within the Ethereum network to gain additional financial returns and provide vital data for AI training on the Bittensor network.

Omron operates through a complex system of smart contracts, Bittensor validators and mining nodes, which are computers that process the computationally intensive requirements of Inference and zero-knowledge (ZK) proofs. The Bittensor economic model incentivized the creation of Subnet 2, a powerful zero-knowledge machine learning (ZK-ML) compute cluster.

The Bittensor decentralized network allows machine learning models to exchange and monetize on a blockchain platform. On the Bittensor, nodes that host these models serve requests for AI services and earn crypto in return for their computational contributions.

Inference Labs’ strategic integration of AI and blockchain through the innovative Proof-of-Inference mechanism and the successful pre-seed funding round marks a forward-thinking step toward democratizing AI technology and ensuring its development is equitable, accessible and protected from monopolistic tendencies with sovereignty.