AI data startup Micro1 reaches $500M gross run rate amid AI training boom

Micro1’s gross annual run rate rose from $100 million to $500 million in eight months, with net revenue between $150 million and $200 million after retaining 60-70% of gross. The company now sells high-margin synthetic data with 80-90% gross margins. It declined sales to Chinese model makers over national security concerns. Micro1 shifted from an AI recruiting platform to data labeling after noting its platform’s use for vetting annotators. It closed a Series A at a $500 million valuation in September.