Micro1, a competitor to Scale AI, is finalizing a Series A funding round that would value the startup at $500 million, according to two sources familiar with the matter.

The company offers data labeling services to AI labs, a segment that has expanded significantly as high-quality, human-generated datasets become more critical for training advanced AI systems.

Micro1 has tapped into this demand by developing an AI-powered recruitment engine, allowing AI labs to find specialized experts rather than relying on large pools of low-wage labor.

Micro1's AI-Powered Talent Engine Drives Explosive Growth

Sources said Micro1 has reached $50 million in annualized revenue, up from $10 million earlier this year.

The company is projecting it will surpass $100 million in annualized revenue by the end of September.

Former Twitter Chief Operating Officer Adam Bain recently joined Micro1’s board.

Venture capital firms 01A and LG Technology Ventures are expected to participate in the Series A round, the sources said.

Scale AI Faces Client Losses Following Executive Departure

Micro1’s rise comes as Scale AI, based in San Francisco, faces changes. The company has recently lost clients after Meta Platforms appointed Scale’s CEO, Alexandr Wang, as its Chief AI Officer to lead Meta’s Superintelligence Labs.

Among the clients that have left or are planning to leave Scale AI are Alphabet’s Google and OpenAI.

These companies are reportedly concerned that working with Scale could reveal their research priorities to Meta.

Another Scale AI competitor, Surge AI, is also active in the space. According to the source, Surge AI raised up to $1 and earned over $1 billion in revenue last year.

PHOTO: MICRO1

This article was created with AI assistance.