In recent years, creative platforms have recognized their potential as data hubs, leading them to either develop AI models or monetize their data by licensing it to AI labs. Wirestock, initially focused on helping photographers distribute their work through stock photography platforms like Shutterstock, has opted for the latter approach.
The company transitioned into a data provider in 2023, offering a variety of datasets, including images, videos, design assets, and 3D content, to AI laboratories. Wirestock boasts a community of over 700,000 artists and designers who contribute to data collection, akin to freelancers on platforms like Fiverr.
According to co-founder and CEO Mikayel Khachatryan, Wirestock has been open about this strategic shift, allowing artists the option to withdraw from the data supply initiative. While he did not disclose the exact number of artists who opted to become data providers, he mentioned that "the majority" chose to participate.
Khachatryan explained that the company's initial offerings consisted of pre-existing content, but demand has shifted towards custom requests for data and content, creating new avenues for creators and propelling the platform's growth.
Recently, Wirestock announced it has raised $23 million in Series A funding, led by Nava Ventures, with contributions from SBVP (co-founded by Sheryl Sandberg), Formula VC, and I2BF Ventures. This funding will support the expansion of its data supply operations.
Currently, Wirestock supplies multi-modal data to six prominent foundation model developers, although the company has chosen not to disclose their identities. The startup has achieved an annual revenue run-rate of $40 million and has distributed $15 million to its contributors so far.
To facilitate this transition, Wirestock retrained its teams in data annotation and labeling to enhance the quality of its offerings for AI labs. Additionally, it established sales and enterprise teams to engage with large-scale clients and expand its inventory of creative assets, particularly in 3D modeling.
The company is actively recruiting new contributors through email marketing and referral programs. Aspiring photographers, videographers, and illustrators can apply to provide data via Wirestock's website, but must first complete an unpaid quality check task. The platform employs a combination of AI and human reviews to assess submissions.
As the demand for data supply services surges, numerous companies, including Surge and Scale AI, have rapidly grown in response to the needs of AI labs. New startups like Micro1, Human Archive, and Human Native AI are also emerging, catering to leading AI model developers.
Wirestock aims to concentrate on providing data that supports creative applications, such as image and video generation, while also exploring opportunities in audio and music data.
Freddie Martignetti, founder of Nava Ventures, noted that his fund was already seeking startups innovating in data procurement before discovering Wirestock. He emphasized the growing importance of multi-modal data in developing systems that perform real-world tasks, beyond just creating images and videos.
With a team of 60 employees, Wirestock plans to utilize the new funding to expand its research, engineering, and product departments while developing enterprise software for AI labs to collaborate on datasets. This funding round raises the total capital raised by the startup to approximately $26 million.