Surge AI Prepares $1B Capital Raise as Demand for Premium AI Training Data Surges

Surge AI, the data-labeling firm founded by ex-Google and Meta engineer Edwin Chen, is preparing to raise up to $1 billion in its first-ever funding round, according to sources familiar with the matter. The San Francisco-based company is reportedly targeting a valuation exceeding $15 billion, seeking both primary and secondary capital to fuel growth and provide employee liquidity.

With over $1 billion in revenue last year, Surge AI has quietly surpassed rival Scale AI, which earned $870 million in the same period. Surge’s rise follows a wave of customer exits from Scale AI after Meta’s strategic stake and executive reshuffling. Known for its high-precision RLHF datasets, Surge AI serves leading AI labs including Google, OpenAI, and Anthropic.