Scale AI competitor Surge AI in talks to raise funds at a $25 billion valuation

Scale AI competitor Surge AI is in talks to raise funds at a $25 billion valuation. Surge AI's revenue reached $1.2 billion in 2024, surpassing Scale AI. According to people familiar with the matter, the company's investors include A16Z and Warburg Pincus.

Data labeling startup Surge AI is in talks to raise approximately $1 billion in its first round of funding at a valuation of at least $25 billion.

This valuation would make Surge one of the most valuable startups in the United States. The company's valuation would be close to that of its competitor Scale AI, which received a $14.3 billion investment from Meta Platforms Inc. in June, bringing its valuation (including raised funds) to over $29 billion.

According to a person familiar with the matter who requested anonymity, potential investors in this round include Andreessen Horowitz, Warburg Pincus, and TPG Inc. JPMorgan Chase is reportedly serving as a lead advisor to Surge's financing efforts.