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Scale AI Raises $1B in Series F Round of Funding

Scale AI, a company that offers data-labeling services to businesses that wish to train machine learning models, has successfully collected a total of one billion dollars in a Series F round of funding from a number of prominent institutional and corporate investors, including Amazon and Meta.

The fundraise is the most recent in a series of significant venture capital investments in artificial intelligence, and it is a combination of primary and secondary finance. Recent events have resulted in Amazon successfully completing a $4 billion investment in OpenAI competitor Anthropic. Additionally, companies such as Mistral AI and Perplexity are currently in the midst of raising additional billion-dollar rounds at extravagant valuations.

Before this round, Scale AI had raised over $600 million throughout the course of its eight-year career. This included a Series E funding round of $325 million in 2021, which valued the company at approximately $7 billion. This is twice as much as the valuation of its Series D funding round in 2020. Three years later, and in spite of the fact that it had to lay off twenty percent of its workforce the previous year due to headwinds, Scale AI is now valued at thirteen and a half billion dollars. This is a sign of the times, as investors are scrambling to get ahead in the AI gold rush.

Scale AI was established in 2016, and its mission is to handle and annotate enormous volumes of data by combining machine learning with 'human-in-the-loop' oversight. Companies can benefit from Scale AI's provision of data that has been appropriately labeled and prepared for the purpose of training models. It specializes in catering to various businesses that have distinct requirements. For example, a company that specializes in self-driving cars will most likely want labeled data from cameras and Lidar, whereas natural language processing (NLP) use-cases will require annotated text.