Nvidia (NVDA.O), Amazon (AMZN.O), and Meta (META.O) are among the tech titans that have contributed to Scale AI’s $1 billion late-stage investment round, which was headed by venture capital firm Accel and valued the AI data startup at over $14 billion.
Leading tech firms are rushing to incorporate AI into their goods and services. In an otherwise quiet private fundraising market, startups that address the spike in demand for AI chips and machine learning have been a shining light.
Large volumes of precisely labeled data are made available by Scale AI, which was founded in 2016. This data is essential for training complex tools like as OpenAI’s ChatGPT.
Established in 2016, Scale AI offers enormous volumes of precisely labeled data, which is essential for developing advanced tools such as OpenAI’s ChatGPT.
The business also assists its clients in creating and improving data sets, including Wall Street bank Morgan Stanley, tech behemoth Microsoft, and AI companies like Cohere and OpenAI.
The latest in a string of AI megadeals is the investment round for the San Francisco, California-based business.
According to data from PitchBook, venture capital funding for AI firms was $19.15 billion in the first quarter of this year, up from $16.36 billion in the same period last year.
According to Scale AI, it will use the funding to develop data capabilities with the Department of Defense and its enterprise clients, as well as to collaborate on the DEFCON 31 red-teaming event that the White House has announced.
The White House has started a number of projects for safe AI innovation and has formed alliances with businesses that are interested in AI.
In the most recent round of fundraising for Scale, notable investors included AMD Ventures, Coatue, Tiger Global Management, and Intel Capital.
It raised $325 million in a series E investment round in 2021, and reports put its valuation at over $7.3 billion.