Wirestock Raises $23M to Fuel AI Data Goldmine
Creative marketplaces are now data goldmines. Wirestock, which previously helped photographers sell their work, has pivoted to supplying multi-modal datasets to AI labs. Here’s how they’re making it happen.
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Have you ever wondered what happens behind the scenes when AI models generate stunning images or videos? Well, one company is at the heart of this process: Wirestock. In a move that highlights the burgeoning value of creative data, Wirestock has raised $23 million to supply multi-modal datasets to some of the world's largest AI labs.
From Stock Photography to Data Supply
Wirestock started as a platform for photographers and designers to sell their work on stock photography services like Shutterstock. But in 2023, they made a strategic pivot. Now, Wirestock supplies datasets of images, videos, design assets, and gaming and 3D content to AI labs.
The company has signed up over 700,000 artists and designers who contribute data through various tasks, similar to freelancers on platforms like Fiverr. Co-founder and CEO Mikayel Khachatryan says Wirestock was transparent about this shift, allowing artists to opt out if they wished.
Custom Requests and New Opportunities
Initially, Wirestock sold off-the-shelf data from their existing library. However, the demand for custom content and datasets led to new opportunities for creators. Khachatryan says, 'The majority of our contributors opted into this new model.' The company now works with six major foundation model makers but won't name them.
Scaling Up with Funding
To support its growth, Wirestock has raised $23 million in Series A funding. This round was led by Nava Ventures and includes participation from SBVP (co-founded by Sheryl Sandberg), Formula VC, and I2BF Ventures. With an annual run-rate revenue of $40 million and having paid out $15 million to contributors so far, Wirestock is well-positioned for expansion.
Building the Data Pipeline
The transition required retraining teams in data annotation and labeling. Wirestock also built sales and enterprise teams to pitch to hyperscalers and find ways to gather more creative assets. Currently, they use email marketing and referral programs to attract new contributors who must complete an unpaid task as a quality check before being accepted.
Future of Data Supply
Demand for data supply services is soaring as AI labs race to improve their models. Companies like Surge, Scale AI, and Mercor have built billion-dollar businesses on the back of this demand. Wirestock aims to focus on providing data for creative use cases such as image and video generation, with plans to explore other modalities like audio and music.
Investment and Growth
Freddie Martignetti from Nava Ventures says his fund was drawn to Wirestock because of their innovative approach to data procurement and refinement. 'Wirestock has a deep understanding of what foundational models and hyperscalers need in terms of multi-modal data,' he notes.
With 60 employees, Wirestock plans to use the new funding to hire for research, engineering, and product roles. They are also developing enterprise software for AI labs to collaborate on datasets.
