Modulus Labs Completes $6.3 Million Funding to Integrate Cryptographic Security Into AI

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Artificial Intelligence (AI) startup Modulus Labs, a project that integrates AI and crypto, has raised $6.3 million in seed funding.

The project announced the launch of its formal debut on Wednesday, following the funding round, led by key crypto investors. The platform is backed by crypto venture funds Variant and 1kx and participation from Bankless, Blockchain Builders Fund and Inflection.

The funding round also saw inflow from angel investors including Ethereum Foundation, Worldcoin, Polygon, Solana, and Microsoft, among others.

Combining ZK Proofs for AI Models


Modulus utilizes zero-knowledge proofs (ZK-proofs) to offer scalability and security enhancements for AI models. According to the project’s co-founder Daniel Shorr, the funding will be utilized to build the Modulus product. “Our audience is basically smart contract devs or on-chain services who want to add AI,” Shorr told CoinDesk.

“But up until now anyways, to add AI into your smart contract, means throwing away this whole blockchain security.”

The company explained that when applied to AI, ZK cryptography allows to verify that an AI model was executed “correctly.” “By verifying this ‘proof of correctness’, on-chain, we get blockchain-equivalent security at a fraction of the cost,” it added.

Combining AI and Blockchain


The project is bridging the gap between artificial intelligence and blockchain, thus allowing advanced decentralized protocols by minimizing human interference.

Further, it can also be used in NFTs to deliver timely and accurate NFT prices using a platform called Upshot.

“The result is an NFT price feed forged with AI superpowers and blockchain security, a marriage uniquely enabled by Modulus’ specialized ZK proving.”

The company has also revealed a few upcoming updates including Ethereum (ETH)-based AI applications through partnerships with Worldcoin, Upshot. Modulus also unveiled ZK prover purpose-built for AI, dubbed ‘Remainder.’

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