Venture Capital: Scale AI Scores $325M Series E Round At A $7.3B Valuation
The valuation is double the one Scale received in December 2020 when it raised $155 million.
Scale AI announced Tuesday its raise of $325 million in a Series E funding co-led by Dragoneer, Greenoaks Capital, and Tiger Global. New investors in the round included Wellington Management and Durable Capital as well as existing investors Coatue, Index, Founders Fund, and YC. (Fortune)
The latest funding takes the total capital Scale has raised to more than $600 million.
Scale’s AI platform labels data such as text, voice, images, and video for customers. AI developers at these customers use these inputs to create AI algorithms. The company focuses on high-impact sectors such as autonomous driving, government, and cutting-edge consumer technology.
Use of funds
“The interest and opportunity for AI are only accelerating, and this new funding will help us continue to expand our team and products to meet this growing demand,” wrote Alexandr Wang, the company’s chief executive officer, in a blog announcing the funding.
Scale has appointed Jeff Wilke, former CEO of Amazon’s Worldwide Consumer business, as Advisor to the CEO.
Its employee strength has already tripled to 300 from about 100 a year ago.
“The AI industry is at an inflection point where every business is looking to implement an AI strategy and we are starting to see a real-world impact,” said Neil Mehta, Founder and Managing Partner at Greenoaks Capital. “We believe Alex and his team at Scale have been critical to enabling businesses across industries reap the full benefits of AI and are taking the industry from proof of concept to reality.”
Scale’s clients include Pinterest (NYSE: PINS), DoorDash, General Motors (NYSE: GM), Nuro, Toyota (NYSE: TM), and others. It also counts the U.S. Department of Defense and the U.S. Air Force among its customers.
Scale launched its Nucleus product in August to enable seamless collaboration across the full AI development cycle.
Related Story: AI Startups Scale And Olive Score Solid Funding Rounds
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