Competitor to Scale AI — startup Micro1 raised $35 million at a $500 million valuation

Startup Micro1, a competitor to Scale AI, has raised $35 million in a Series A funding round, with the company's valuation reaching $500 million.

The company specializes in recruiting and managing human contractors for data preparation tasks required to train AI models.

Micro1 collaborates with leading AI labs, including Microsoft, as well as Fortune 100 corporations. Currently, the company's annual recurring revenue stands at $50 million, up from approximately $7 million at the beginning of 2025.

The company sees growing demand for high-quality labeling services, particularly regarding "expert" data—such as that provided by software developers, doctors, professional writers, and other specialists.

Additionally, Micro1 has developed its own recruiter-interviewer system called Zara, which selects and evaluates candidates for the role of expert contractors. Among those hired are professors from universities such as Stanford and Harvard.

Source: TechCrunch