Micro1 is making a $1 billion bet on AI's latest data craze

A San Francisco Muni bus emblazoned with Micro1 advertising drives on Mission Street. Stephen Council/BI As AI labs go on the hunt for real-world data, Micro1 is throwing everything at getting it for them.The startup is one in a new class of fast-moving data brokers, gobbling up companies' internal data and packaging it for the likes of OpenAI, Anthropic, and other model developers. The executives who sell their companies' data to Micro1 find themselves suddenly participating in a new sector of the economy, where terabytes of mundane workplace interactions can be worth hundreds of thousands of dollars.Ilya Brotzky, the CEO and cofounder of the recruiting startup VanHack, told Business Insider he was shocked when he filled out a Micro1 survey about his company's data and received a "substantial" offer."I didn't believe it, to be honest," he said. "I felt like it was a little too good to be true."Micro1 says it pays $100,000 to $2 million for a single midsize company's data. It recently announced plans to spend $1 billion on the project over the next year. Brotzky and the other executives Business Insider spoke to for this story wouldn't share the exact amounts their companies received.For Micro1, the new focus on workplace data matches a broader evolution in the industry, as Business Insider has written about in The AI Data Grab, a series about how tech giants are increasingly turning to workers, users, and the physical world to get data to train AI.First, AI companies gobbled up text from the internet and corpora of old books. Then they realized that humans grading AI responses could improve their models. And now, companies are using complex simulations, built on real-world data, to improve the tenacity and skill of their AI. Micro1 CEO Ali Ansari. Micro1 Gartner estimated that spending on AI data is likely to surge from less than $1 billion last year to almost $6.5 billion in 2027. Micro1's chief revenue officer, William Almeida, told Business Insider in September that his company has been explaining to prospective customers why their data is suddenly so valuable for those simulations."Every time I talk to companies, I tell them, 'Hey, I see this as a booming business,'" Almeida said. Slack DMs, Google Docs, Canva files: Micro1 wants all it can getMicro1 has three ways of working with AI model developers.First, it can take a company's raw data, transform it to protect privacy, and license it to a lab. In addition, Micro1 provides an in-progress AI agent to companies and gets feedback on how it works. The third route is the simulation: Micro1 takes a company's data up to a certain timestamp, freezes it, and then provides that "environment" to a model developer trying to teach its AI how to work from existing context.Micro1 pays more for larger, more complex datasets, as well as for data that represents a unique type of work or knowledge. It usually wants to license a company's entire data corpus, so that an AI model can replicate what it would be like to be a human employee."The connection, the diversity, the traceability of all of these data points, they matter a lot when you think about model training," Almeida said.Brotzky also received an offer from AI data startup Mercor to buy his company's data, though he opted for Micro1. Once Brotzky dug into Micro1's privacy process, he said he felt comfortable sharing all the data they requested. That included VanHack's Google suite, Confluence data, Slack messages, and customer relationship management software.Grant Gooley, the CEO of the marketing agency MyPortal Marketing, also views his deal with Micro1 as an innovation. He has sold internal design files from Figma and Canva, as well as checklists from Monday.com."When we were building these processes years ago, I didn't think that we would be using it to support AI learning," Gooley said. "But doing that, it's very fulfilling."CEOs pitch the deals to their workersMicro1 and its rivals are full steam ahead. Still, there are open questions. Former and current employees aren't likely to get any compensation from — or a voice in — their work becoming AI fodder. Ifeoma Ajunwa, a law professor at Emory University, previously told Business Insider that data sales are an "ethically gray area."When pitching to potential customers, Almeida tells them this business is in the early days."If you wait too much, you won't get the premium that the first companies are getting," he said.VanHack's team got a confidence boost from the Micro1 deal, Brotzky said, because of the additional revenue stream it representsGooley said he's kept MyPortal Marketing's employees in the loop about the deal with Micro1 and hasn't heard any complaints."I told my team that this is something that you're going to tell your grandchildren about one day, because we are literally supporting the future growth of marketing agencies," Gooley said.Have a tip? Contact this reporter via email at scouncil@businessinsider.com, or over text, Signal, Telegram, or WhatsApp at 415-757-8198. Use a personal email address, a non-work WiFi network, and a non-work device; here's our guide to sharing information securely. Read next Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Stephen is a senior tech reporter at Business Insider, covering OpenAI, Anthropic and the ecosystem around the leading artificial intelligence companies.Previously he covered technology at SFGATE, and has written for The Wall Street Journal, The Information and CNBC. He studied journalism and economics at Northwestern University.His work has earned an SF Press Club Investigative Reporting Award and, in 2025, SPJ NorCal’s Excellence in Journalism Award for Technology Reporting.Stephen lives in San Francisco. Contact him via email at scouncil@businessinsider.com, or on Signal, Telegram, or WhatsApp at 415-757-8198. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. The AI Data Grab AI Tech More OpenAI Anthropic Artificial Intelligence Big Tech Startups