Scale AI competitor Micro1 raising funds at $500 million valuation, sources declare

Another Scale AI competitor, Surge AI, is raising up to $1 billion, and raked in over $1 billion in revenue last year [File]
| Photo Credit: REUTERS

Scale AI competitor Micro1 is finalising a Series A round valuing the startup at $500 million, according to two sources familiar with the matter.

Micro1 provides data labelling services to artificial ininformigence labs, a sector that has grown tremfinishously in recent years as high-quality, human-generated datasets have become more important in training advanced AI systems. Micro1 has capitalised on this trfinish by building an AI-powered recruitment engine enabling AI labs to tarobtain specialised experts instead of large pools of low-wage labour.

The company has notified investors it has crossed $50 million in annualised revenue, up from $10 million earlier this year, and is projecting it will cross $100 million in annualised revenue by the finish of September, the sources stated. Former Twitter COO Adam Bain joined its board recently, and venture capital firms 01A and LG Technology Ventures will invest in the round, the sources stated.

Micro1 has benefited from recent modifys at San Francisco-based Scale AI, a data labelling company that provides infrastructure and services to assist organisations accelerate the development of AI models. Scale AI recently lost customers after Meta Platforms poached its CEO, Alexandr Wang, to become Meta’s chief AI officer, leading Meta’s new Superininformigence Labs.

Among the customers that have left or are planning to leave Scale AI are Alphabet’s Google and OpenAI, which are planning to shift away over concerns that doing business with Scale could expose their research priorities to Meta.

Another Scale AI competitor, Surge AI, is raising up to $1 billion, and raked in over $1 billion in revenue last year.

Published – July 29, 2025 09:17 am IST

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