David AI, a startup providing high-quality audio training data for artificial intelligence companies, has closed a $25 million Series A funding round. The investment, led by Alt Capital and Amplify Partners, values the company at over $100 million.
Founders Tomer Cohen and Ben Wiley met while working at Scale AI and quickly developed a close friendship. After Cohen’s promotion to chief of staff, he felt equipped to start his own company. The idea for David AI emerged from their discussions about the future of AI, particularly its transition from text-based interfaces to real-world applications.
The Genesis of David AI
David AI specializes in collecting, refining, and producing audio data for AI voice models. The company has amassed approximately 100,000 hours of audio across more than 15 languages, complete with detailed metadata on dialects and accents. This extensive dataset is crucial for training sophisticated voice AI systems.
Business Model and Growth
The company’s business model involves paying individuals to read scripts or engage in conversations, which are then recorded. This approach provides AI labs with the high-quality audio data they need without diverting resources from algorithm development and model training.
In its first year, David AI has achieved significant growth, reaching an annualized revenue run rate of over eight figures. The company counts most of the ‘Magnificent Seven’ tech giants among its clients, although it declined to name them specifically. This rapid growth is attributed to the increasing demand for voice AI capabilities.
Investor Perspective
Investors see David AI as a solution to the pressing data shortage faced by AI firms. Liz Wessel from First Round Capital, one of David AI’s initial investors, notes that the shift from text-based AI to voice AI is driving demand for companies like David AI. Sarah Catanzaro of Amplify Partners agrees, highlighting the simplicity and effectiveness of David AI’s solution in meeting this urgent need.
Future Prospects
With its successful funding round and impressive growth, David AI is well-positioned to continue providing essential audio training data for the evolving AI landscape. The company’s focus on quality and its ability to cater to the diverse needs of AI developers make it a significant player in the voice AI space.
