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Surge AI Eyes Up to $1 Billion Capital Raise Amid Growth and Competition with Scale AI

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Surge AI, a fast-growing data-labeling company competing directly with Scale AI, is reportedly preparing to raise as much as $1 billion in its first-ever capital fundraising, according to sources cited by Reuters. Founded by former Google and Meta engineer Edwin Chen, Surge AI aims for a valuation exceeding $15 billion, although talks remain in the early stages and the final amount could be higher. The planned funding round would include both primary capital to fuel growth and secondary capital to provide liquidity for employees.

Surge AI has achieved profitability and has been bootstrapped since its 2020 founding. It generated over $1 billion in revenue last year, surpassing Scale AI’s $870 million revenue for the same period. By comparison, Scale AI was last valued at $14 billion in a funding round last year, and more recently at nearly $29 billion following Meta’s strategic investment, which included hiring Scale’s CEO Alexandr Wang to lead Meta’s Superintelligence Labs.

The surge in interest for Surge AI coincides with a shift among some major AI customers, such as Google and OpenAI, who are reportedly moving away from Scale AI due to concerns about sharing sensitive research priorities with Meta, Scale’s largest investor. Despite this, Scale AI maintains its business remains strong and reassures clients about data protection.

Surge AI has grown quietly but rapidly, becoming a major player in the data labeling space, distinguished by its use of a network of highly skilled contractors rather than large pools of low-cost labor. Its premium services cater to leading AI labs including Google, OpenAI, and Anthropic.

As reinforcement learning from human feedback (RLHF) becomes critical for training advanced AI, the need for precise, nuanced data labeling has soared, benefiting companies like Surge AI. However, some investors remain cautious about the sector due to its traditionally low margins and reliance on human labor, which could face automation pressures as AI technologies advance.

Atlassian Rival Linear Raises $82 Million at $1.25 Billion Valuation

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Linear, an enterprise software startup offering development and project planning tools, announced a successful $82 million Series C funding round, valuing the company at $1.25 billion. The round was led by venture capital firm Accel, with participation from existing backers 01A and Sequoia, as well as new investors Seven Seven Six and Designer Fund.

The 80-employee, remote-first company competes directly with Atlassian’s popular project management tool Jira. Linear reported a 280% profit increase last year and serves over 15,000 customers, including notable AI-focused companies such as OpenAI, Scale AI, and Perplexity.

CEO Karri Saarinen emphasized that Linear’s software targets specific software development workflows rather than broad customization, helping users avoid being overwhelmed by complex tools. Key features include a triage inbox for bug and feature requests and sprint management to streamline development cycles. The company also provides AI management capabilities, allowing AI to collaborate as a team member in software projects, reflecting the growing integration of AI in development.

Miles Clements, partner at Accel and Linear investor, praised the company’s focus on customer needs over flashy AI gimmicks, noting that many vendors flood the market with unwanted AI features, whereas Linear delivers practical solutions tailored to users.

Linear plans to use the fresh capital to expand its product lineup and attract larger enterprise clients.

Airwallex Hits $6.2 Billion Valuation in New $300 Million Funding Round

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Airwallex, the global fintech firm specializing in cross-border payments, announced on Wednesday that it has raised $300 million in fresh capital, lifting its valuation to $6.2 billion — an 11% increase from its previous valuation in 2022.

The raise comes at a time when the broader private funding market remains tepid. According to PitchBook, over 26% of completed deals in Q1 2025 were either flat or down rounds, reflecting ongoing investor caution amid persistent high interest rates, recession fears, and geopolitical uncertainty, particularly around U.S. trade policy under Donald Trump.

Growth Despite Market Headwinds

Founded in Melbourne in 2015, Airwallex has grown into a leading payments platform offering international invoicing, cross-border payments, and spend management tools. The company moved its U.S. headquarters to San Francisco in 2023 and now has its global headquarters in Singapore.

“Just a few years ago, most of our business came from our cross-border infrastructure. Today, online payment processing and spend management account for over 70% of net revenue,” said Jack Zhang, co-founder and CEO of Airwallex.

The firm’s client roster includes global names such as Shein, Qantas, and Xero.

Investor Support and Strategic Focus

The latest round included backing from well-known venture firms such as Square Peg, DST Global, Lone Pine Capital, and Blackbird, bringing Airwallex’s total funding to over $1.2 billion.

Zhang emphasized that Airwallex is targeting Japan, Korea, and Latin America for its next wave of geographic expansion, further challenging incumbents like JPMorgan Chase, Bank of America, and Citigroup in the global payments arena.

Industry Context

While the fintech sector enjoyed explosive growth during the post-COVID digital transformation wave, funding has since slowed dramatically. Airwallex’s successful raise — and upward valuation — positions it as a standout performer in a cautious investment climate, signaling investor confidence in its business model and global strategy.