U.S. Startups Enhance the Intelligence of Chinese AI Systems
WHO:
Forbes - U.S. data-labeling startups, including Surge AI and Mercor, are involved in supplying training data to Chinese AI companies.
Forbes - Tencent, a Chinese company previously designated by the U.S. government as associated with the Chinese military, is seeking training data.
Forbes - Michael Kratsios, the Trump administration’s science and technology advisor, flagged the practice of using outputs from ChatGPT or Claude to train Chinese models.
Forbes - Sean Cai, an AI data consultant, discusses the data supply chain in China.
Forbes - Max Gazor, founder of Striker VC, comments on the ethical implications of selling data to Chinese AI companies.
Bloomberg - Ronald Keung, Head of Asia Internet Research at Goldman Sachs, discusses competition among Chinese AI developers.
WHAT:
Forbes - The U.S. data labeling companies are generating billions in annual revenue supplying training data to customers like OpenAI and Anthropic.
Forbes - Mercor is currently eyeing a valuation of $20 billion, while Surge AI is reportedly worth at least $25 billion.
Forbes - AfterQuery has grown from $100 million to hundreds of millions in annual recurring revenue in three months.
Forbes - The top six Chinese AI labs spend about $500 million annually on American data labeling companies.
Forbes - Mercor’s Q2 revenue from Chinese AI labs was 2% of total revenue, with annualized revenue crossing $2 billion.
Forbes - AfterQuery generates at least $50 million in recurring revenue from Chinese AI labs.
Forbes - Mercor is currently eyeing a valuation of $20 billion, while Surge AI is reportedly worth at least $25 billion.
Forbes - AfterQuery has grown from $100 million to hundreds of millions in annual recurring revenue in three months.
Forbes - Mercor’s Q2 revenue from Chinese AI labs was 2% of total revenue, with annualized revenue crossing $2 billion.
Forbes - AfterQuery generates at least $50 million in recurring revenue from Chinese AI labs.
Forbes - Tencent circulated a detailed request for training data spanning finance, cybersecurity, and AI systems capable of improving themselves.
Forbes - Mercor has hired a specific engagement manager for China.
Forbes - U.S. data labeling companies are engaged in a multi-hundred-million-dollar trade in training datasets with Chinese AI labs.
Forbes - The top six Chinese AI labs spend about $500 million annually on American data labeling companies.
Forbes - Surge AI has actively courted Chinese buyers, with CEO Edwin Chen traveling to China to meet lab executives directly.
Forbes - Mercor is currently eyeing a valuation of $20 billion, while Surge AI is reportedly worth at least $25 billion.
Forbes - AfterQuery has grown from $100 million to hundreds of millions in annual recurring revenue in three months.
Forbes - Mercor’s Q2 revenue from Chinese AI labs was 2% of total revenue, with annualized revenue crossing $2 billion.
Forbes - AfterQuery generates at least $50 million in recurring revenue from Chinese AI labs.
Forbes - Tencent circulated a detailed request for training data spanning finance, cybersecurity, and AI systems capable of improving themselves.
Forbes - Mercor is currently eyeing a valuation of $20 billion, while Surge AI is reportedly worth at least $25 billion.
Forbes - AfterQuery has grown from $100 million to hundreds of millions in annual recurring revenue in three months.
Forbes - Mercor has hired a specific engagement manager for China.
Forbes - U.S. startups are engaged in a multi-hundred-million-dollar trade in training datasets with Chinese AI labs.
Forbes - The top six Chinese AI labs spend about $500 million annually on American data labeling companies.
Forbes - Mercor’s Q2 revenue from Chinese AI labs was 2% of total revenue, with annualized revenue crossing $2 billion.
Forbes - AfterQuery generates at least $50 million in recurring revenue from Chinese AI labs.
Forbes - Surge AI has actively courted Chinese buyers, with CEO Edwin Chen traveling to China to meet lab executives directly.
Bloomberg - Keung expects competition for the best performance-to-cost balance among Chinese AI developers to intensify.
WHERE:
Forbes - The International Conference on Machine Learning took place in Seoul, Korea.
Forbes - Chinese tech giants involved include Tencent, Alibaba, and Ant Group.
WHEN:
Forbes - Mercor was founded in 2020 and Surge AI in 2023.
Forbes - Mercor won a contract with the U.S. federal government in late June.
WHY:
Forbes - U.S. data labeling companies are willing to sell to Chinese AI labs due to the lucrative nature of the business.
Forbes - Chinese AI labs view themselves as a collective buyer pool seeking top-tier Western datasets.
HOW:
Forbes - U.S. data labeling companies sell both custom, one-off projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs, which are manufactured with the same "knowledge pipelines" developed for OpenAI or Anthropic.
Forbes - U.S. data labeling companies sell both custom, one-off projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs, which are manufactured with the same "knowledge pipelines" developed for OpenAI or Anthropic.
Forbes - U.S. data labeling companies sell both custom, one-off projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs, which are manufactured with the same "knowledge pipelines" developed for OpenAI or Anthropic.
Forbes - U.S. data labeling companies provide both custom projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs.
Forbes - Chinese companies explicitly request to buy all the data that U.S. labs have already purchased.
Forbes - U.S. data labeling companies sell both custom, one-off projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs, which are manufactured with the same "knowledge pipelines" developed for OpenAI or Anthropic.
Forbes - U.S. data labeling companies sell both custom, one-off projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs, which are manufactured with the same "knowledge pipelines" developed for OpenAI or Anthropic.
Forbes - U.S. data labeling companies provide both custom projects and "Off-the-Shelf" (OTS) datasets to Chinese AI labs.
Forbes - Chinese companies explicitly request to buy all the data that U.S. labs have already purchased.
(UPDATED August 6, 2026 18:29 UTC)
U.S. data labeling companies are raking in billions annually by supplying training data to major players like OpenAI and Anthropic, with Mercor aiming for a valuation of $20 billion and Surge AI reportedly worth at least $25 billion. In just three months, AfterQuery has skyrocketed from $100 million to hundreds of millions in annual recurring revenue, while it generates at least $50 million from Chinese AI labs, which collectively spend around $500 million each year on American data labeling services. These companies offer both custom projects and "Off-the-Shelf" datasets, utilizing the same "knowledge pipelines" that have been developed for leading AI firms.
--
(UPDATED August 6, 2026 08:16 UTC)
Mercor is aiming for a valuation of $20 billion, while Surge AI is reportedly valued at least $25 billion, with AfterQuery experiencing explosive growth from $100 million to hundreds of millions in annual recurring revenue in just three months. U.S. data labeling companies are engaged in a lucrative trade with Chinese AI labs, providing both custom projects and "Off-the-Shelf" datasets, which utilize the same "knowledge pipelines" developed for leading firms like OpenAI and Anthropic. Meanwhile, Tencent has circulated a detailed request for training data across finance, cybersecurity, and self-improving AI systems, highlighting the increasing collaboration between U.S. and Chinese tech sectors.
--
(UPDATED August 6, 2026 01:15 UTC)
Mercor is currently aiming for a valuation of $20 billion, while Surge AI is reportedly valued at a minimum of $25 billion. In just three months, AfterQuery has seen its annual recurring revenue surge from $100 million to hundreds of millions, and it generates at least $50 million in recurring revenue from Chinese AI labs. U.S. data labeling companies are selling both custom projects and "Off-the-Shelf" datasets to these labs, utilizing the same "knowledge pipelines" that were developed for OpenAI and Anthropic.
--
(UPDATED August 5, 2026 22:10 UTC)
Tencent has circulated a detailed request for training data that spans finance, cybersecurity, and self-improving AI systems. In other news, Mercor is eyeing a valuation of $20 billion, while Surge AI is reportedly worth at least $25 billion, and AfterQuery has impressively grown from $100 million to hundreds of millions in annual recurring revenue in just three months. Additionally, Mercor has hired a specific engagement manager for China, as U.S. data labeling companies continue to sell both custom projects and "Off-the-Shelf" datasets to Chinese AI labs, utilizing the same knowledge pipelines developed for OpenAI or Anthropic.
--
(UPDATED August 5, 2026 20:39 UTC)
U.S. data-labeling startups, including Surge AI and Mercor, are engaged in a significant trade, supplying training datasets to Chinese AI companies like Tencent, which has been linked to the Chinese military. These Chinese AI labs collectively spend around $500 million annually on American data, with companies like Mercor and AfterQuery generating substantial revenue from these contracts. As competition among Chinese developers intensifies, experts are raising ethical concerns about the implications of selling data to these firms, highlighting a complex and lucrative data supply chain.