Humane Ex-Executives Launch $25 Million AI Fact-Checking Startup After AI Pin Debacle
Two former executives of the struggling AI hardware startup Humane are launching a new venture, Infactory, an AI fact-checking search engine. Brooke Hartley Moy, Humane’s former strategic partnerships lead, and Ken Kocienda, Humane’s former head of product engineering, have secured $4 million in seed funding, valuing their company at $25 million. This move comes just months after Humane’s AI Pin received a lukewarm reception, highlighting a shift in focus from consumer hardware to the enterprise AI market.
Key Takeaways:
- Infactory, founded by former Humane executives, is an AI fact-checking search engine targeting enterprise clients.
- The startup secured $4 million in seed funding at a $25 million valuation, demonstrating investor confidence in the enterprise AI market despite Humane’s setbacks.
- Infactory’s focus on transparency and explainability differentiates it from existing AI chatbots often criticized for inaccuracies.
- The founders’ experience at prominent companies like Salesforce, Google, and Apple brings considerable credibility and expertise.
- The launch comes amidst a rapidly growing generative AI market predicted to reach over $1 trillion in revenue within a decade.
From Humane’s AI Pin to Infactory’s Fact-Checking Focus
The launch of Infactory marks a significant departure for Hartley Moy and Kocienda following their May exit from Humane. While the AI Pin, Humane’s flagship product, failed to impress critics with its functionality and trustworthiness – many reviewers called it “untrustworthy and not very useful” – Hartley Moy emphasized that their decision to leave was independent of the Pin’s reception. “**The reality was this had been brewing for some time, unrelated to the reviews and how that unfolded,**” she stated in an interview with CNBC. Instead, the duo saw a compelling opportunity within the enterprise sector, an area where their experience aligns perfectly. “Building this kind of product was never going to be a fit at a consumer hardware company,” Hartley Moy explained, highlighting the fundamentally different needs and priorities of enterprise clients.
Targeting Enterprise Needs for Accuracy and Transparency
Infactory aims to fill a critical gap in the enterprise AI landscape. Kocienda explained to CNBC that their tool is designed to search both a company’s internal database and the open web, providing answers in a completely transparent and explainable manner. This focus on transparency directly addresses the major criticisms leveled against many existing AI chatbots, which often provide incorrect or nonsensical answers without clear source attribution. Infactory is not building to an easily exploited large language model (LLM), instead, it builds AI to better engage with the data structure of enterprise customers. “**There are many, many businesses that are not part of AI-native companies… who want to be participating in this ecosystem,**” Hartley Moy said. “**Their business requirements are very regimented around accuracy, around trustworthiness, about high-quality answers. The standards for building those applications are just so much higher.**”
Addressing the Challenges of Existing AI Chatbots
The current proliferation of generative AI tools has spurred an intense arms race, with major players like Google, Microsoft, and OpenAI vying for dominance in a market projected to generate over $1 trillion in revenue within ten years. However, concerns around accuracy and trustworthiness remain pervasive. The launch of Google’s “AI Overview” in Google Search, for example, was quickly met with criticism over its propensity to produce inaccurate and nonsensical results. This lack of reliability highlights the significant opportunity presented by Infactory’s focus on fact-checking and explainable AI.
Infactory’s Unique Approach to Data Processing
Infactory stands apart by meticulously preparing data for AI analysis to ensure greater accuracy. As Kocienda illustrates, imagine a doctor needing to verify potential drug interactions before prescribing medication. Infactory can access and process the relevant internal data, providing an accurate answer while meticulously citing its sources. “**That answer has to be right, and that information exists in the data that this company has built up,**” he stated.
Semantic Understanding and Intelligent Limitations
Kocienda further emphasizes that Infactory’s AI isn’t simply about finding answers; it’s about understanding the context and limitations of the data. Unlike many chatbots that fabricate answers when unsure, Infactory will refuse to answer questions it cannot reliably address based on the available data. For example, if asked how many three-point shots Shohei Ohtani (a baseball player) has made this season, Infactory would recognize the incongruity and not attempt to invent an answer.
This focus on semantic understanding and the intelligent imposition of limitations sets Infactory apart, offering a level of accuracy and reliability crucial for enterprise applications where incorrect information can have serious consequences.
Funding and Future Plans
Infactory’s seed round was led by Bee Partners, with participation from Andreessen Horowitz and other investors. While primarily funded by institutional investors, Hartley Moy confirmed the use of a small special-purpose vehicle (SPV), a funding method commonly employed by AI companies. The inclusion of an SPV demonstrates the increasing adoption of this strategy in the AI sector, mirroring approaches by companies like Anthropic and Cohere.
Early Adoption and Future Launch
Currently in alpha testing, Infactory is collaborating with design partners to gather feedback before a broader product launch later this year. The startup’s focus on enterprise customers recognizes the growing demand for reliable and transparent AI solutions within various industries, ranging from finance and insurance to healthcare and media. The team’s expertise, combined with the funding secured despite Humane’s challenges, suggests a strong potential for Infactory to make a significant mark in the evolving AI landscape.
The journey from the AI Pin’s underwhelming launch to Infactory’s promising start underscores the dynamic nature of the AI market and the ability of entrepreneurs to adapt and innovate in response to both successes and setbacks. With their experience and ambitious vision, Hartley Moy and Kocienda have positioned Infactory to capitalize on the increasing demand for trustworthy and explainable AI solutions in the enterprise world. The success of Infactory, however, remains to be seen, as only time will tell if their focus on accuracy and transparency will lead to the widespread adoption the team desires.
