Wirestock raises $23M to supply creative multi-modal data to AI labs

In recent years, creative platforms have recognized their potential as a treasure trove of data, leading them to either create AI models independently or monetize this valuable information through licensing. Wirestock, a company that initially assisted photographers in selling their work on stock image platforms like Shutterstock, has opted for the latter approach. In 2023, Wirestock transitioned to become a data provider, offering datasets that include images, videos, design assets, and gaming content to AI laboratories. The platform boasts a community of over 700,000 artists and designers who perform various tasks for data collection, akin to freelancers on platforms like Fiverr. Co-founder and CEO Mikayel Khachatryan emphasized that the company has been transparent about its strategic shift, allowing artists to choose whether to participate in its data supply initiative. While specific numbers on how many opted in as data providers were not disclosed, Khachatryan noted that “the majority” made the switch. Initially, Wirestock's efforts revolved around selling existing content from their library, but they soon faced an influx of custom requests for unique content, leading to new opportunities for creators and significant growth for the platform. On Thursday, Wirestock announced it has successfully raised $23 million in Series A funding, spearheaded by Nava Ventures, with participation from SBVP—co-founded by Sheryl Sandberg—along with Formula VC and I2BF Ventures. Currently, Wirestock supplies multi-modal data to six major foundational model developers, although Khachatryan refrained from disclosing their names. He mentioned that the company is on track for an annual revenue run-rate of $40 million and has distributed $15 million to contributors. As part of this transition, Wirestock retrained some of its teams to enhance data annotation and labeling, ensuring the information is highly useful for AI labs. The startup also established sales and enterprise teams to effectively pitch to large tech companies. To attract new contributors, Wirestock employs email marketing and referral initiatives. Photographers, videographers, and illustrators can apply to share their data on the website, though they must first complete an unpaid task to verify their quality before acceptance. The evaluation process employs a combination of AI and human reviews. The demand for data supply services is soaring as AI labs strive to refine their models. Companies like Surge, Scale AI, and Mercor have rapidly established multi-billion-dollar businesses based on this demand. New startups, including Micro1, Human Archive, and Human Native AI, are also collaborating with leading AI developers. Wirestock aims to focus on supplying data for creative applications, such as image and video generation, while also investigating opportunities in audio and music. Freddie Martignetti, founder of Nava Ventures, stated that his fund was eager to find a startup innovating in data procurement even before discovering Wirestock. “Wirestock possesses a profound understanding of the multi-modal data needs of foundational models and hyperscalers. Our investment thesis centers on the increasing significance of multi-modal data, not only for generating images or videos but also for enabling models to perform real-world tasks,” Martignetti remarked. With a current workforce of 60, Wirestock plans to allocate the new funding towards hiring in research, engineering, and product development roles, as well as creating enterprise software that facilitates collaboration on datasets for AI labs. This latest funding round brings the total capital raised by the startup to approximately $26 million.