Surge AI, a data-labeling firm that competes with Scale AI, has hired advisors to raise as much as $1 billion in the first capital raising in the firm's history, sources told Reuters, as it seeks to capitalize on growing user demand amid Scale AI's recent customer exodus.

Surge AI, a data-labeling startup similar to Scale AI, hopes to raise $1B in its first capital fundraising round to reach a valuation of more than $15B, according to Reuters. The San Francisco-based company also plans to capitalize on the growing demand for data labeling in artificial intelligence use cases,