Scale AI announced on Tuesday that it has secured $1 billion in a late-stage funding round. This round was led by venture capital firm Accel and saw participation from tech giants such as Nvidia, Amazon, and Meta, resulting in the AI data startup being valued at approximately $14 billion.
In the current tech landscape, leading companies are increasingly integrating AI into their products and services. This trend has created significant opportunities for startups that supply AI chips and machine learning tools, making them a rare bright spot in an otherwise slow private funding market.
Established in 2016, Scale AI specializes in providing extensive and precisely labeled data, essential for training advanced tools like OpenAI’s ChatGPT. The company assists its clients—including major names like Microsoft, Morgan Stanley, and AI firms such as OpenAI and Cohere—in developing and refining their data sets.
Headquartered in San Francisco, California, Scale AI’s recent funding round is part of a growing number of substantial investments in the AI sector. According to PitchBook, AI startups attracted $19.15 billion in venture capital in the first quarter, up from $16.36 billion in the same period last year.
Scale AI plans to utilize the new capital to enhance its data capabilities for enterprise customers and the U.S. Department of Defense. Additionally, the funds will support the company’s involvement in the White House’s red-teaming event, which is part of broader initiatives to foster safe AI innovation.
This latest funding round also saw investments from high-profile firms such as Coatue, Tiger Global Management, Intel Capital, and AMD Ventures. Previously, in 2021, Scale AI raised $325 million in a series E round, which valued the company at around $7.3 billion.
