Scale AI Secures $1 Billion, Doubling Valuation to $13.8 Billion
Scale AI, a leading data-labeling service provider for machine learning models, has successfully raised $1 billion in its Series F funding round. This latest injection of capital, which includes both primary and secondary funding, has significantly boosted the company’s valuation to $13.8 billion, nearly double its previous valuation of $7 billion in 2021. The funding round was led by Accel and included high-profile investors such as Amazon, Meta, and Nvidia, among others.
The $1 billion Series F round attracted a mix of existing and new investors. Alongside Accel, other returning investors included Y Combinator, Index Ventures, Founders Fund, Coatue, Thrive Capital, Spark Capital, Tiger Global Management, Greenoaks, and Wellington Management. New investors joining this round were Cisco Investments, DFJ Growth, Intel Capital, ServiceNow Ventures, AMD Ventures, WCM, and tech investor Elad Gil. The involvement of prominent corporate and institutional investors underscores the growing importance and potential of AI-driven data management solutions.
Data is a critical component of artificial intelligence (AI), serving as the foundation upon which machine learning models are built. Scale AI specializes in providing high-quality, annotated data that is essential for training AI systems. This service is particularly valuable as most data used by AI systems is unstructured and requires significant processing to be useful. Scale AI combines machine learning with human oversight to manage and annotate large volumes of data, catering to diverse industry needs—from autonomous vehicles to natural language processing.
The company’s notable clients include major corporations such as Microsoft, Toyota, General Motors, Meta, and the U.S. Department of Defense. Additionally, Scale AI has been assisting OpenAI in fine-tuning its GPT-3.5 models, further solidifying its position in the AI ecosystem.
Scale AI’s CEO and co-founder, Alexandr Wang, emphasized the company’s vision of achieving “data abundance,” a state where the necessary data for advancing AI technologies is plentiful and readily available. This vision aligns with the goal of accelerating progress toward artificial general intelligence (AGI). Wang stated, “Data abundance is not the default — it’s a choice. It requires bringing together the best minds in engineering, operations, and AI. Our vision is one of data abundance, where we have the means of production to continue scaling frontier LLMs many more orders of magnitude. We should not be data-constrained in getting to GPT-10.”
The new funding will enable Scale AI to expand its data processing capabilities and support the development of more advanced AI models. This involves not only enhancing data annotation processes but also broadening the scope of services to include model evaluation and public sector collaborations.
The fundraising success of Scale AI is part of a broader trend in the AI industry, where companies specializing in data management and AI infrastructure are attracting substantial investments. For instance, CoreWeave, another AI-focused startup, recently raised $1.1 billion, highlighting the intense investor interest in AI and related technologies.
Despite the economic headwinds that led Scale AI to lay off 20% of its workforce last year, the company’s ability to secure such a significant investment indicates strong confidence in its long-term potential and strategic direction. This move is also indicative of the broader AI “gold rush,” where investors are keen to back companies that provide essential infrastructure for AI advancements.
The funding will also bolster Scale AI’s efforts in both the private and public sectors. The company’s recent contract with the U.S. Department of Defense and its work on the White House-announced DEFCON 31 red-teaming event are examples of its expanding influence and capability in supporting AI development on a national scale.
