KEY FACTS: a16z Crypto has led a $15 million seed fundraise for Poseidon, a San Francisco-based startup, to address the critical shortage of high-quality, IP-cleared training data for AI development. Poseidon is leveraging decentralized Web3 technologies and Story Protocol’s on-chain licensing infrastructure to create a transparent, scalable data layer that ensures fair compensation for contributors and mitigates legal risks. The platform targets industries like robotics and spatial computing, where diverse, real-world datasets are essential.
Source: a16z Crypto
A16z Crypto Leads $15M Poseidon Raise to Decentralize AI Training Data
San Francisco-based startup Poseidon has raised $15 million in a seed funding round led by a16z Crypto, the cryptocurrency arm of venture capital giant Andreessen Horowitz. The announcement positions Poseidon as a frontrunner in the race to decentralize AI data pipelines, offering a solution to the scarcity of high-quality, legally cleared training data that has long hindered the scalability of AI systems. This funding is a significant step toward redefining how AI models access and utilize data, with implications for industries ranging from robotics to spatial computing.
The rapid advancement of AI technologies, particularly large language models (LLMs) and generative AI systems, has exposed a critical bottleneck: the availability of high-quality, intellectual property (IP)-cleared training data. While computational power and model architectures have seen significant improvements, the lack of diverse, legally usable datasets has emerged as a major obstacle to building robust AI systems capable of performing in complex, real-world environments. Sandeep Chinchali, Poseidon’s chief scientist and chief AI officer, had this to say at Story Protocol, the startup’s incubator:
“LLMs and compute are no longer the bottlenecks; it’s high-quality data that’s missing,”...“Poseidon delivers the IP-cleared, structured real-world datasets that AI teams need to build systems that actually perform in physical, complex environments.”
Poseidon’s mission is to bridge this gap by creating a decentralized data layer that ensures traceability, legal compliance, and fair compensation for data contributors. The company is leveraging Web3 technologies to democratize access to high-quality data, enabling AI developers to train models more effectively while addressing ethical and legal concerns surrounding data usage.
Unlike traditional centralized data sourcing models, which often struggle to meet the growing demand for niche, high-context datasets, Poseidon’s platform relies on decentralized infrastructure to collect and distribute data. This approach not only enhances scalability but also ensures that data contributors are fairly rewarded for their contributions. Poseidon is integrating Story Protocol’s on-chain licensing infrastructure to enable transparent tracking of data ownership and usage, mitigating the IP risks that have plagued AI development in recent years.
The decentralized model also addresses a key limitation of centralized systems: the inability to efficiently orchestrate the creation and curation of diverse datasets at scale. This vision aligns with trends in the Web3 space, where decentralization is seen as a means to empower individuals and communities while reducing reliance on monolithic tech giants. Poseidon’s platform allows data contributors to monetize their data while maintaining control over its use, creating a more equitable ecosystem for AI development.
The $15 million seed round, led by a16z Crypto, shows the growing interest in the intersection of AI and blockchain technology. Chris Dixon, founder of a16z Crypto, described Poseidon’s approach as a step toward “a new economic foundation for the internet.” He emphasized the importance of rewarding creators and suppliers for providing the diverse inputs required by next-generation intelligent systems. Dixon said:
“Poseidon’s model rewards creators and suppliers for providing the diverse inputs that next-gen intelligent systems need...”
The funding will be used to further develop Poseidon’s decentralized data layer, expand its infrastructure, and accelerate the adoption of its platform among AI developers. The company is also exploring partnerships with industries that require specialized datasets, such as robotics, autonomous vehicles, and spatial computing, where high-context, real-world data is critical for success.
Poseidon’s funding coincides with the growing convergence of AI and Web3 technologies. According to a report by crypto researcher Messari, venture capital firms invested $213 million in AI-related startups in the third quarter of 2024 alone, highlighting the growing interest in decentralized AI solutions. Projects like Poseidon are part of a movement to decentralize AI infrastructure, challenging the dominance of centralized tech giants that currently control much of the AI landscape.
This movement is driven by concerns over privacy, transparency, and ethical standards in AI development. A UN report published in April 2025 warned that the $4.8-trillion AI market is dominated by just 100 companies, most of which are based in the US and China, raising concerns about monopolistic control and potential misuse of AI technologies. Decentralized AI projects like Poseidon aim to counter these risks by creating open, transparent systems that prioritize user control and data sovereignty.
With the backing of a16z Crypto and a clear vision for the future, Poseidon is poised to make a lasting impact on the AI landscape. As the company continues to build its decentralized data layer, it will likely inspire other startups to explore the potential of Web3 technologies in solving some of AI’s most pressing challenges.
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