Snorkel AI reaches $3.5 billion valuation after $350 million funding round

Snorkel AI has raised $350 million in a Series E funding round, bringing its valuation to $3.5 billion. The round was co-led by Insight Partners and S32, with participation from existing investors such as Addition, Lightspeed, Greylock, GV, and Wells Fargo.

Founded in 2019 by researchers from the Stanford AI Lab, the company has undergone a significant strategic pivot. Originally a provider of software for automating manual data labeling, Snorkel AI now operates a “data-as-a-service” model. This approach provides completed datasets and simulated environments directly to AI laboratories and enterprises.

The company utilizes a hybrid model that combines proprietary software and synthetic data generation with contributions from subject matter experts. This method supports both supervised learning and more complex reinforcement learning tasks. Snorkel AI reports an annualized revenue run rate of $375 million, representing an eighteenfold increase over the previous year, driven by the high demand for high-quality training data in the frontier AI sector.