Scale AI announced it had secured $1 billion in a late-stage funding round. This round was led by venture capital firm Accel and included investments from Nvidia, Amazon, and Meta. As a result, the AI data startup is now valued at nearly $14 billion.
Top tech companies are swiftly integrating AI into their products and services. Startups that meet the growing demand for AI chips and machine learning have become a bright spot in the otherwise slow private funding market.
Established in 2016, Scale AI offers large amounts of accurately labeled data, essential for training advanced tools like OpenAI’s ChatGPT.
The company also assists clients, such as Microsoft, Morgan Stanley, and AI firms like OpenAI and Cohere, in creating and improving data sets.
Based in San Francisco, California, this latest funding round for Scale AI is part of a series of significant AI deals.
In the first quarter, AI startups secured $19.15 billion in venture capital funding, up from $16.36 billion in the same period last year, according to PitchBook.
Scale AI plans to use the new capital to enhance its data capabilities for enterprise customers and the U.S. Department of Defense. Additionally, it will support the White House-announced DEFCON 31 red-teaming event.
The White House is actively partnering with AI-focused companies and has initiated several projects to ensure safe AI innovation.
Other prominent investors in this latest funding round for Scale AI included Coatue, Tiger Global Management, Intel Capital, and AMD Ventures.
Back in 2021, Scale AI raised $325 million in a series E funding round, which valued the company at approximately $7.3 billion.
