The increasing demand for AI-driven data has led to significant revenue growth for several lesser-known startups in the sector. Handshake, originally a job platform for college graduates, has seen its annualized revenue from AI training services soar to nearly $1 billion, a dramatic increase from just $5-10 million a year ago. After paying contractors, Handshake's net revenue from this segment stands at approximately $300 million. Additionally, its traditional recruitment business is generating around $150 million annually.
Another startup, Mercor, which has been operational for only three years, has also crossed the $1 billion revenue mark, up from $500 million last September. Mercor pays 60-70% of its revenue to contractors, leaving a net revenue between $300 million and $400 million. However, recent data breaches have raised concerns about maintaining this growth rate.
As competition intensifies, other companies like Turing and AfterQuery are also making strides, with Turing reaching an annual revenue of $300 million and AfterQuery surpassing $100 million. Despite the rapid growth, revenue stability remains a challenge due to the ease of switching data annotation providers among leading AI labs.
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