Toronto-based gaming software startup ArenaX Labs has closed $6 million in funding as it looks to fuel the development of its artificial intelligence (AI)-powered video game.
The financing round was led by Framework Ventures, with participation from SevenX Ventures, FunPlus, Xterio, and Moore Strategic Ventures. The new capital will be used to develop ArenaX Labs’ flagship game, AI Arena.
“We’re doubling down on the ArenaX team because we think they have one of the most ingenious approaches to consumer AI.”
Founded in 2021, ArenaX Labs is developing a player-versus-player, Ethereum-native game where players can purchase and train characters that are powered by AI. Players can then put their characters to battle with other AI characters, with the outcomes based on how well players train them. ArenaX plans to introduce a Web3 iteration of the game, which would allow players to vie for prizes.
The browser-based game, which will be available free of charge, is focused on educating players by giving them a “uniquely intimate understanding” of AI without the need for coding skills, the company said in a statement.
“AI Arena marks a major advance in the fusion between technology and education: an innovative way for people without advanced technical expertise to learn about AI–and to have fun doing so,” ArenaX Labs CEO Brandon Da Silva said in a statement.
ArenaX previously raised $5 million in seed financing, led by crypto-focused investment firm Paradigm with participation from Framework Ventures.
Not to be confused with Toronto-based Framework Venture Partners, Framework Ventures is a San Francisco-based venture capital firm that predominantly invests in companies developing decentralized technologies.
“We’re doubling down on the ArenaX team because we think they have one of the most ingenious approaches to consumer AI,” Framework Ventures co-founder Michael Anderson said in a statement. “Most consumers still view AI as a novelty they may engage with on a surface level. The ArenaX team is flipping this narrative by creating products that encourage normal people to begin learning to train AI through the language of play.”
AI Arena is currently open for pre-registration, and ArenaX Labs plans to launch the game in beta in early 2024.
Feature image courtesy Unsplash. Photo by Mateo.