Micro1, a rising competitor to Scale AI, is closing a Series A funding round that values the company at $500 million, according to two individuals with knowledge of the deal.
The startup specializes in data labeling services for artificial intelligence labs—a field that has rapidly expanded as demand for high-quality, human-annotated datasets grows. Micro1 has leveraged this shift by creating an AI-driven recruitment platform that connects AI labs with specialized talent, moving away from reliance on low-cost labor.
Investors have been informed that Micro1 surpassed $50 million in annualized revenue, jumping from $10 million earlier this year. The company projects it will exceed $100 million by the end of September. Recently, former Twitter COO Adam Bain joined its board, and firms like 01A and LG Technology Ventures are set to back the round.
Micro1’s growth aligns with major changes at Scale AI, a San Francisco-based data labeling firm. Scale AI recently lost key clients after Meta Platforms hired its CEO, Alexandr Wang, to lead its new Superintelligence Labs as chief AI officer. This leadership change sparked concerns among major clients like Google (Alphabet) and OpenAI, who now plan to exit due to potential exposure of their R&D strategies to Meta.
Meanwhile, Surge AI—another rival to Scale AI—is reportedly raising up to $1 billion, having already generated over $1 billion in revenue last year.
