Fundamental Research Labs Raises $30M+ for AI Agent Development

Fundamental Research Labs Secures $33 Million in Series A Funding

Applied AI research firm Fundamental Research Labs, previously operating as Altera, has announced the successful completion of a $33 million Series A funding round. This investment was spearheaded by Prosus, with additional participation from Patrick Collison, the co-founder and CEO of Stripe.

A Unique Organizational Structure

Fundamental Research Labs distinguishes itself through a multifaceted approach, concurrently developing AI applications across diverse sectors. Initial seed funding supported the creation of AI bots designed for collaborative gameplay within Minecraft.

Diverse Teams and Long-Term Vision

Currently, the company comprises specialized teams focused on gaming, prosumer applications, core research, and platform development. Dr. Robert Yang, the founder and a former MIT faculty member, envisions Fundamental Research Labs as a historically significant entity, diverging from conventional startup models.

Early Revenue Generation

The company is already generating revenue by offering its agent to users following a seven-day trial period, as stated by Yang.

Fairies: A General-Purpose Consumer Assistant

Among the offerings from Fundamental Research Labs is Fairies, a versatile consumer assistant. This application facilitates interaction with an AI bot, integrates with various applications, and enables querying across multiple knowledge bases.

Fairies can also automate appointment scheduling and execute repetitive tasks through customized workflows. Yang explained that this app serves as a testing ground for the startup’s engineers to evaluate the capabilities of its models and platform technology.

Shortcut: An AI-Powered Spreadsheet Agent

The company also provides Shortcut, a spreadsheet-based agent utilized by analysts for financial modeling and data analysis. This agent is designed to function autonomously, akin to a junior analyst, while maintaining a familiar Excel-like interface for experienced users.

Investor Perspective

Sandeep Bakshi, an investment partner at Prosus, highlighted the team’s focus and practical applications. He stated, “We’ve seen many early-stage startups, but what stood out here is a small, highly mission-driven team focused on digital humans with actual use cases.”

Bakshi further emphasized the team’s caliber and ability to translate talent into tangible products, describing the venture as “uniquely compelling.”

Previous Funding and Total Investment

Last year, the company secured $9 million in seed funding, co-led by First Spark Ventures and Patron, with contributions from a16z Speedrun and Eric Schmidt. To date, Fundamental Research Labs has raised over $40 million in funding.

Future Plans: Robotics and Embodiment

Yang indicated the company’s openness to exploring various application models and its ultimate ambition to develop robots. He explained, “We are working on productivity (apps) now because that is where the most value is created.”

He added that focusing on productivity allows the company to generate revenue, build its team, and refine its technology, ultimately paving the way for tackling physical challenges and achieving embodiment.

Correction

Please note that the funding round was confirmed to be $33 million, and this article has been updated to reflect the accurate amount.