Micro1, a three-year-old startup, has secured $35 million in a Series A round, bringing the value of the company to $500 million.
The round was led by 01 Advisors, the venture capital firm co-founded by former Twitter leaders Dick Costolo and Adam Bain.
Bain will also join Micro1’s board of directors, alongside Joshua Browder, CEO of DoNotPay.
A Young Founder
Ali Ansari, just 24 years old, leads Micro1. Under his direction, the company has grown rapidly.
In early 2025, Micro1 reported $7 million in annual recurring revenue; today, that figure stands at $50 million. Its clients include Microsoft and several Fortune 100 companies.
AI Data Market
The company enters the spotlight as Scale AI, the industry’s most prominent player, faces pressure.
Meta invested $14 billion in Scale AI and hired its CEO. This raised concerns among other AI labs, including Google and OpenAI, about data security and independence.
As a result, many began to cut ties with Scale AI. This created an opportunity. Startups like Micro1, Surge, and Mercor have stepped in to meet rising demand.
Unlike Scale AI, which built its base using low-cost workers worldwide, Micro1 focuses on highly skilled experts.
Also read: Meta Plans $10 Billion Investment in Scale AI
Expertise
The demands of AI training have changed. Early models needed large amounts of basic labeled data.
Today’s advanced systems require precise input from professionals. Doctors, senior engineers, and experienced writers now play a central role in shaping AI outputs.
To meet this demand, Micro1 developed Zara, an AI recruiter. Zara interviews and screens applicants, allowing only qualified experts to join.
Thousands of specialists, including professors from Harvard and Stanford, now work through the platform. Ansari says hundreds more are added every week.
Strong Competition
The market is competitive. Mercor reported $450 million in revenue. Surge earned more than $1 billion in 2024.
By comparison, Micro1’s $50 million looks small. Yet its steady growth and focus on quality have attracted attention.
Adam Bain highlighted the importance of Micro1’s role. “The only way models are now learning is through net new human data,” he said.
“Micro1 is at the core of providing that data while moving at speeds I’ve never seen.”
Many Players
Despite the competition, there is room for multiple companies. AI labs rarely rely on a single provider for all their data needs.
The scale of demand makes partnerships with several firms necessary. For Micro1, this means a strong chance to expand.
