AI Data Labeling Startup Micro1 Eyes $500M Valuation in Series A Fundraising
Micro1, a rising competitor to Scale AI, is reportedly nearing completion of a Series A funding round that would value the startup at $500 million, according to sources close to the matter. The San Francisco-based company specializes in data labeling for artificial intelligence labs, a rapidly growing sector driven by the increasing demand for high-quality, human-curated datasets to train sophisticated AI models.
What sets Micro1 apart is its innovative approach to recruitment. Rather than relying on large pools of low-wage labor, the startup uses an AI-powered hiring engine that helps AI labs find and employ specialized experts. This targeted talent strategy aligns with the broader industry shift toward higher-quality data generation in the training of advanced AI systems.
The company has experienced explosive growth this year, reportedly jumping from $10 million to over $50 million in annualized revenue. Micro1 projects it will surpass $100 million in annualized revenue by the end of September. Former Twitter COO Adam Bain recently joined its board, and notable venture firms including 01A and LG Technology Ventures are expected to participate in the funding round.
Micro1’s rise is occurring in the shadow of internal disruptions at Scale AI. The data infrastructure giant recently lost several major clients—including Google and OpenAI—following the departure of CEO Alexandr Wang to Meta, where he now leads its new Superintelligence Labs. The move has raised concerns among Scale AI’s clients about the potential exposure of their sensitive research initiatives to Meta.
With this momentum, Micro1 appears poised to take advantage of the shifting landscape in AI services. The company’s strategic focus, rapid revenue growth, and recent talent acquisition position it as a formidable player in the evolving data-labeling space, as enterprise clients seek alternatives that better protect proprietary research and offer greater specialization.
Source: Reuters