Verida, a decentralized personal information network (DePIN) developer, has raised $5 million in a funding round aimed at tackling growing concerns over user data privacy in the age of artificial intelligence.
The company aims to provide internet users with alternative data storage solutions that prevent their data from being used to train artificial intelligence models.
This significant funding round included participation from a diverse group of investors, including O-DE Capital Partners, ChaiTech Ventures, Simurg Labs, Gate Labs, HASH CIB, Bison Capital, Amesten Capital, and Mysten Labs’ Evan Cheng. The $5 million was also supplemented by community pre-sales of Verida’s Storage Credit token, bringing the company’s valuation to $50 million.
Verida will use the funds to further develop its personal data ownership infrastructure. The company’s network focuses on offering decentralized storage and encryption for users’ personal information.
By distributing data across numerous nodes managed by various network participants, Verida ensures that users retain control over their data. This approach aims to disrupt the current AI landscape by providing more secure, privacy-preserving personalized AI solutions.
The growing concerns about the use of internet users’ data by language-learning models have driven Verida’s mission. As the AI market continues to expand, the need for secure data storage becomes increasingly important.
Earlier this month, Meta announced its plans to use European users’ data to improve its AI models. Similarly, X (formerly Twitter) revealed last year that it would utilize its users’ biometric data to train AI, as part of an update to its privacy policy.
Verida’s initiative responds to these industry trends, offering a solution that prioritizes user privacy and data security. By leveraging decentralized storage and encryption technologies, Verida empowers users to retain control over their personal information. This not only enhances data privacy but also opens the door to more secure and personalized AI applications.
Furthermore, Verida’s approach may become the new norm for data privacy within the AI sector. The company is committed to promoting the decentralized storage of data to minimize the risks associated with centralized storage facilities. This creates a more secure environment where data leakage and unauthorized access to users’ personal information are effectively mitigated.
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