Micro1, a three-year-old startup specializing in human-annotated data for AI training, has raised $35 million in Series A funding, bringing its valuation to $500 million. The funding round was led by 01 Advisors, co-founded by former Twitter executives Dick Costolo and Adam Bain, positioning Micro1 as a rising competitor in the AI data services market as companies like Scale AI face growing scrutiny over data privacy.
Founded by 24-year-old Ali Ansari, Micro1 has seen rapid growth, with annual recurring revenue jumping from $7 million to $50 million since early 2025. The startup has partnered with top AI labs, including Microsoft, and several Fortune 100 companies. While still smaller than competitors such as Mercor and Surge, which report annual revenues of $450 million and $1.2 billion respectively, Micro1’s momentum suggests it could become a major player in the AI data sector.
Along with the funding, Micro1 expanded its board to include Adam Bain and Joshua Browder, founder of the AI legal assistant DoNotPay. Bain highlighted the critical role of new human-generated data in training AI models, noting that Micro1 can deliver such data at unprecedented speeds.
With fresh funding and strategic partnerships, Micro1 is well-positioned to meet the growing demand for AI training data, providing a compelling alternative to existing providers and solidifying its place in the competitive AI infrastructure ecosystem.
