Over the last few years, creative marketplaces and platforms have come to realize they are sitting on a goldmine of data. They can either use that data to develop their own AI models or turn it into a steady revenue stream by licensing it to other AI labs. Wirestock, a company that originally helped photographers distribute and sell their work on stock photography services like Shutterstock, has chosen the latter route. In 2023, the company shifted its focus to become a data provider, now supplying datasets made up of images, videos, design assets, and gaming and 3D content to AI labs.

Wirestock reports that its platform has signed up more than 700,000 artists and designers who complete various tasks for data collection, essentially functioning like freelancers on platforms such as Fiverr. Mikayel Khachatryan, the company’s co-founder and CEO, stated that Wirestock was transparent about this transition and allowed artists to opt out of its data supply business. (In 2022, the platform had over 100,000 photographers.) Khachatryan did not specify exactly how many people switched over to become data providers for AI, only noting that “the majority” did. “Initially, a lot of our deals were just selling what we had off the shelf, like our existing library. But then it turned into a lot of custom requests for content and data, and that created new opportunities for creators, and the platform just took off,” he said.

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The startup announced on Thursday that it has raised $23 million in Series A funding to expand its new data supply business. The round was led by Nava Ventures, with participation from SBVP (co-founded by Sheryl Sandberg), Formula VC, and I2BF Ventures. Khachatryan says Wirestock currently provides multi-modal data to six of the largest foundation model makers, though he declined to name them. He noted that the company currently has an annual run-rate revenue of $40 million and has so far paid out $15 million to its contributors.

As part of the transition, the startup had to retrain some of its teams to annotate and label data in detail, making it useful for AI labs. It also built sales and enterprise teams to pitch to hyperscalers and found ways to acquire more creative assets in areas like 3D modeling. Currently, Wirestock uses email marketing and referral programs to attract new contributors. Photographers, videographers, and illustrators can apply to provide data on its website, but they must first complete an unpaid task as a quality check before being accepted. The company says it uses a mix of AI and human reviews to evaluate all work on the platform.

Demand for data supply services is extremely high right now, as AI labs race to continue improving their models. Companies like Surge, Scale AI, and Mercor have built businesses worth tens of billions almost overnight, driven by the demand for diverse datasets. A slate of new startups such as Micro1, Human Archive, and Human Native AI are also working with top AI model makers. Wirestock aims to focus on providing data for models that support creative use cases, such as image and video generation. The company is also exploring other modalities like audio and music.

Freddie Martignetti, founder of Nava Ventures, said his fund was looking for a startup that was innovating on data procurement and refinement even before learning about Wirestock. "I think Wirestock has a deep understanding of what foundational models and hyperscalers need in terms of multi-modal data to start creating more human-like systems." Wirestock currently employs 60 people and will use the new funding to hire for research, engineering, and product roles. It is also building enterprise software for AI labs to collaborate on datasets. This funding round brings the startup's total capital raised to approximately $26 million.