FoxDoo TechnologyToday, July 1, 2025, reports emerged that Surge AI, a leading data-labeling startup founded by former Google and Meta engineer Edwin Chen, is in talks to secure up to $1 billion in its first-ever funding round, aiming for a valuation above $15 billion. Backed by strong profitability—Surge AI generated over $1 billion in revenue last year—it’s positioned itself as a formidable rival to Scale AI, which reported $870 million in revenue over the same period.
Surge AI’s premium labeling services have attracted major clients such as Google, OpenAI, and Anthropic, capitalizing on concerns around shared data with competitors after Meta’s sizable investment in Scale AI. Sources caution that talks are preliminary and the final raise could exceed $1 billion, blending primary funding for growth initiatives with secondary liquidity for employees.
As AI model training demands more high-quality annotated data, Surge AI’s strategic move underscores a broader trend: firms are seeking specialized, secure vendors rather than one-stop solutions. If successful, this fundraising round will fuel Surge AI’s expansion and solidify its role in shaping the data infrastructure powering tomorrow’s AI breakthroughs.
