Snorkel AI triples valuation to $3.5B as demand for AI training data booms (techcrunch.com)

Snorkel AI, a startup specializing in the creation of training datasets and simulated environments for AI, has successfully raised $350 million in a Series E funding round, bringing its valuation to $3.5 billion—nearly triple its previous valuation of $1.3 billion just 17 months ago. The round was led by Insight Partners and S32, with participation from existing investors like Addition and Lightspeed. Snorkel has seen its annualized revenue run rate soar to $375 million, reflecting a remarkable eighteenfold increase over the last year, driven by the growing demand for high-quality training data among AI labs. Significantly, Snorkel has pivoted from offering data-labeling automation to providing complete datasets through a data-as-a-service model. This hybrid approach not only utilizes software and models to generate synthetic data but also leverages subject matter experts to enhance data quality. Unlike some competitors, Snorkel’s revenue details reflect payments to human experts as part of its cost of goods sold, presenting a more accurate picture of its operational success. As AI labs increasingly rely on synthesized environments and comprehensive training inputs, Snorkel’s innovative offerings position it strongly within the booming AI data market.