Labelbox, a US company that supplies training data and testing environments to AI developers, has raised more than $100 million in Series E financing at a $1.25 billion pre-money valuation (the company’s value before the new money).
Not all of the money is equity. Labelbox said in a blog post by chief executive Manu Sharma on 14 October 2026 that the total includes “equity and a credit facility”, meaning part of it is borrowing capacity rather than investment in shares. It did not say how the total is split.
Infinitum Partners led the round, with Wipro Ventures, a16z, B Capital, Tau Ventures, Snowpoint Ventures “and others” taking part, according to Labelbox.
What Labelbox does
Labelbox started by helping companies label data for machine learning. It now builds environments where AI models practise realistic work tasks and are scored on the results, a method known as reinforcement learning. Its product for AI labs is called Horizon.
It also sells Recursion, a system for running AI agents that are graded on each task and improve over time. Labelbox said it opened Recursion to all customers last week as Recursion Managed Agents, and that it uses more than 50 such agents internally.
Labelbox’s claims
The company makes several claims about its business. Labelbox says it works “with 90% of the leading frontier AI labs and hyperscalers”, and that its network of experts includes “more than 4 million people”.
It also says it “reached profitability this year while growing more than 5x year over year”. Labelbox did not publish revenue or profit figures.
Labelbox said it will spend the money on research and engineering for Horizon and Recursion, on staff, and on access to computing power.
What this means
- AI training data is still big business. Labs need ever more realistic tasks to train and test models.
- Check the structure. Part of the headline figure is credit, not equity.
- The growth claims are unverified. Labelbox has not published the numbers behind them.
Sources
- Labelbox (Manu Sharma), “Labelbox raises $100M+ Series E”, 14 October 2026. https://labelbox.com/blog/labelbox-series-e/
