To help level the playing field when it comes to AI tools for mid-sized businesses, Bindu Reddy, a former Google product exec, recently co-founded RealityEngines.AI.

The 15-person San Francisco-based startup recently raised a $5.25 million seed funding round from investors including Khosla Ventures and Eric Schmidt, Google's former CEO and Chairman.

As Bindu Reddy, CEO and co-founder of RealityEngines.AI, told Business Insider in a recent interview, her latest startup is focused on leveling the playing field when it comes to AI, so that it's accessible to companies not named Facebook, Amazon, or Alphabet.

Reddy — who most recently spent nearly two years working on AI projects inside Amazon — says that building tools for such businesses is a challenge, mostly because the rich data sets needed to train intelligence models are often lacking.

That's why one of the first products her 15-person San Francisco-based team — that functions as a part research lab and part tech startup — has been focused on is something called "dataset augmentation."

The practice takes a few known data points, learns from those examples, and then starts creating new, "synthetic data" to "blow up the data set and create much more robust models," Reddy said.

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