13 ms·
Scale (YC S16) Raises $100M from Accel and Founders Fund at $1B Valuation
- tempsy 7y agoI saw someone on Twitter post that this was a real life “Not Hotdog” from HBO’s Silicon Valley, though ironically this company doesn’t actually use AI or ML at all it’s just scaled human contract workers. There’s some social commentary in there somewhere.
- ayw 7y agoWe do use AI and ML to help making the labeling process more efficient, but you are correct we do have scaled human insight that ensures very high quality. One difference from "Not Hotdog" is that our data is used to power the algorithms of other AI/ML companies like OpenAI, Waymo, Lyft, etc., so it's imperative that we have impeccable quality. That necessitates humans to ensure accuracy, particularly in safety-critical applications like self-driving cars.
- tomrod 7y agoI consider this a good thing. I hope the next few years play out well for your company. Good luck!
- choppaface 7y agoIt is notable that one of Scale's customers has a real yellow Corvette with "#NotHotdog" as a bumper sticker.
- ayw 7y agoHey everyone! I'm Alex, CEO/founder of Scale! I just wanted to chime in that we're a YC company as well (S16), and I'm thankful to the HN community for having been supportive through our whole journey.
- atemerev 7y agoI wish you a great success — curated datasets and training/markup APIs for AI applications is a great idea indeed.
- ArtWomb 7y agoCongrats! Two quick questions... Is it weird sharing the same name as a fashion icon ;) And I'm curious about your ML "stack". Particularly the chicken and egg problem. Are you using something like Tensorflow with pre-trained binaries, perhaps from a vendor? Or is it 100% proprietary. Thanks!
- ayw 7y agoRe 1—It has been a bit of annoyance growing up (for example, Google autocorrects "Alexandr Wang" to "Alexander Wang"), but we run different circles ;) Re 2—As with most companies working on ML these days, our stack is not fully proprietary. We don't take too strong an opinion on ML framework and use both Tensorflow and Pytorch currently. We generally use neural network architectures from the literature and then iterate on top of them to suit our unique problem requirements.
- opportune 7y agoHow do you plan to make money once the self-driving hype dies down or becomes a solved problem?
- ayw 7y agoSelf-driving is one of many applications of AI/ML to the real world, each of which likely requires high-quality labeled data to truly be production-ready. This includes other robotics, self-checkout like Amazon Go, natural language understanding, and more. Second, self-driving as a problem space will need labels for a very long time. In an application where (1) verifiable model performance is paramount, and (2) the models need to be extremely robust for cars to be safe, the need for labeled data is only magnified.
- ChuckMcM 7y agoI really dislike this sort of journalism. Theranos was founded by a 19 year old too. That one didn't work out so well. Was it because the founder was so young? The board so oblivious? (a bit of both if you read the book) What does it really matter how "old" the founder is, does the business have a workable business plan? Can it be profitable? Do people pay enough money for its goods and services to return a net income? Those are interesting questions. That it was started by a teenager is not, to my way of thinking, particularly relevant. I'd much prefer that the article focus on these things which helps us understand the value that they bring to the market and what makes them unique.
- gervase 7y agoAgreed. I don't object to company or founder exposés such as these, but I do find the article's focus on the founders' age to be misplaced and distasteful. I also think that these kinds of breathless adorations of the latest "wunderkind" to contribute to the widespread perception/reality of ageism within the industry. I understand it makes for a more click-attracting title, but imagine if the title was "Silicon Valley's Latest Unicorn Is Run By an Asian" - it sounds offensive, at least to me. Preferably the articles would focus on something other than a protected class. Note that age is not technically a protected class, only "advanced age", defined as 40+, but I personally think that making unbounded age a protected class would be beneficial for everyone. Refusing to hire someone because they're "too young" is equally as offensive as refusing because they're "too old".
- tempsy 7y agoI think we have to just come to terms with the reality that ad-dependent journalism is inherently click-baity. Anyone who says otherwise is delusional or lying.
- invalidOrTaken 7y agoI've come up with much dumber business plans at 30 than many originated by 22-yr-olds. Harshness is in order---regarding the business plan. But the age is a total red herring.
- minimaxir 7y ago
- pkaye 7y ago> It’s built a set of software tools that take a first pass at marking up pictures before handing them off to a network of some 30,000 contract workers, who then perform the finishing touches. Machine learning indeed.
- ayw 7y agoTo be clear, there is real machine learning that makes the labeling more efficient. You can see some videos of what this looks like in this Twitter thread: https://twitter.com/BW/status/1158407524216909826 https://twitter.com/BW/status/1158407524216909826
- aspiringfoundr 7y agohey @ayw. your story is really inspiring! I am currently studying full stack web development via online courses as I have few startup ideas that I want to work on that I believe to be promising. Is there any Machine learning course you specifically recommend taking in order to come up to speed with the AI technology and also if you could share some tips on becoming a first time founder especially getting the funding from a silicon valley VC as in what do they really look for when investing in a startup started by someone with no prior startup experience then that would be really great! Thanks ahead of time!
- typon 7y agoVery similar to the Magic Wand tool in Photoshop which gives a good starting point and can be improved on manually in the problem areas where colors are ambiguous.
- Areading314 7y agoMore like machine teaching!
- swampthinker 7y agoHey @ajw, congrats on the growth. Quick question for you: How does Scale's labeling speed and quality compare to Hive?
- ayw 7y agoWe have many clients who have switched from Hive. There’s usually a step change improvement in quality and scalability—up to 10x improvement in error rates.
- kareemsabri 7y agoBit of an AI novice here, I did Norvig's course a few years ago and never worked in the field, but how can a machine take a "first pass" at labelling without being trained? What information is it using to apply labels to the first set of data? How does this approach differ from a conventional classifier? Would the initial guesses essentially be random?
- plinkplonk 7y agoThe business model is, initially, selling human labeling services to owners of data (like Uber or Google), using third world cheap labor to keep costs low. This is very much like a call center service. Once a sufficiently large corpus of human labeled data is available (across clients and datasets probably), that labeled data is used to train a 'first pass' labeling system. It then becomes a virtuous cycle. Now the labeling is done in two phases. The first pass system makes its best guess, which is then reviewed by the existing human work force. Over time the first pass labeler gets better and better, till only very tricky/borderline cases need human intervention. The end game is anyone's guess. Pretty clever biz model hack.
- vadym909 7y agolike Google Search using human raters to verify their updated algorithms improve results
- streetcat1 7y agoSo they have a set of pretrained model that they are running as first pass and either verify the result with humans, or filter out the low confidence results and give them to humans. Note that this creates a positive feedback loop. I.e. as they get more results they can improve the initial stage.
- yters 7y agoHuman powered AI for the future! Because artificial intelligence is not.
- deleted 7y ago[deleted]
- deleted 7y ago[deleted]
- deleted 7y ago[deleted]
- sindergirl 7y agoIn essence, the company pays third worlders a pittance to transfer humanity's skills to the machine. The skill transfer is limited to what can be done with a mouse and screen, but since that's where most human ability is currently manifested, it's hardly a limitation. What happens to the serfs once the transfer is complete? Do they realize they are exchanging temporary wages for eternal futility? I like how the investors rationalized this devil's deal and the usurpation of the poor: "If you could be pulling a rickshaw or labeling data in an air-conditioned internet café, the latter is a better job."
- Jagat 7y ago"Do they realize they are exchanging temporary wages for eternal futility?" Yes they do. and this isn't wrong either "If you could be pulling a rickshaw or labeling data in an air-conditioned internet café, the latter is a better job."
- samclearman 7y agoI work at Scale - I've met a bunch of people that work on our platform, and seeing the impact that it's had on their lives is actually a huge source of inspiration to me. There's a writeup highlighting some of their stories at https://scale.com/blog/positive-externalities https://scale.com/blog/positive-externalities - based on my personal experience, I can say that it's not bullshit.
- DoreenMichele 7y agoI'm an American who began doing online gig work (for a different company, not Scale) while homeless. It allowed me to pay down debt and get back into housing under circumstances where a normal job was out of the question. This worked in part because my income was portable, so I was able to take a train to a more affordable area to get a place within my limited budget. This ability to move at will and take my income with me was historically largely limited to the Jet Set and comfortably well-off retirees. For many people, doing gig work is a tremendous opportunity with a very big upside. It can be a huge improvement in both their standard of living and quality of life. Most people decrying such labor arrangements aren't doing anything whatsoever to offer a better alternative. Color me unimpressed.
- khannate 7y agoI'm a little confused about what the business model here is. It sounds like they are selling labeled data to companies, and doing this by "label[ing] most of the objects automatically" and then having humans review these labels. So does this mean they are using some unsupervised method to label data, and then selling that to people who want to train supervised models? Why aren't they instead just beating out the people they sell to by solving the same problems without labeled data?
- fnbr 7y agoPresumably they have a supervised model that they've trained on all their labeled data so far (possibly pooled across clients). They'd use this to estimate labels for their data, and then have humans correct it. They're basically doing the standard supervised data training loop. If I had to guess, the long term plan probably is to move up the stack and sell the models to their clients.
- troquerre 7y agoCongrats Alex! It's been amazing watching your journey from the first pivot to Scale to now.
- MetalGuru 7y agoWhat was the first pivot?
- scottrogers86 7y agowhats made you more successful than other players in this space?
- sindergirl 7y agoReminds of Sleep Delaer: https://en.wikipedia.org/wiki/Sleep_Dealer https://en.wikipedia.org/wiki/Sleep_Dealer
- streetcat1 7y agoSo what is your competitive advantage? I.e. what cannot be replicated? From a technical perspective, can someone just post labelling task to mechanical Turk? what is the difference here?
- nikanj 7y agoToday: The $100M war chest that lets them undercut the prices of mechanical turk Tomorrow (Maybe): Huge corpus of previously solved cases by humans, that can be used to train a custom model to replace the humans
- notrlyai 7y agoBig deal. Exploiting slave labor is hardly a new idea.
- vadym909 7y agoI don't understand startup valuations well, so would appreciate someone more knowledgeable throwing some light on how these valuations are made. Would I be in the ballpark in assuming that they have a Sales ARR of $125M. At a sales multiple of 8x (for SaaS cos) makes them worth $1B. The $125M is around 12 large customers with contracts of $10M each, which buys them services of 2500 labeling contractors for 2000 hrs/year at $2/hr ($4K/yr). At some point they will stop being a services company which carry a low multiple and switch to automated labeling without contractors (ala self driving cars) or develop some unique IP that they sell as a service?
- choppaface 7y agoOne major risk is that their customers simply build teams in-house. Microsoft has had a very large team for years (and MSR / Ofer Dekel has actually published a lot of useful research on how to handle “crowdsourced” labels). Companies have been building productive off-shore labeling / moderation teams since the early days of Crowdflower. At some point, it’s not just the cost that makes sense, but rather the Product team wants a reliable workforce that they can control. Another risk is that the well-funded self-driving customers go belly-up. However, one important facet is that dead players don’t release much data. MobilEye has a vast dataset (including images from not just Tesla but other automakers) but that data isn’t going anywhere. Neither is Nvidia’s 180PB of HD recordings. (Release or transfer in part requires dealing with PII of the people in the recordings. Now if only the offshore labelers weren’t handed PII for free...). The valuation is likely a forward-looking bet on AI as whole versus the current suite of contracts. Anybody using an off-the-shelf model will want some labels after their first proof of concept. I wouldn’t argue that the math makes sense but rather that demand does look underserved.
- scalrname 7y agoCongrats on the recent purchase of scale.com. Can you share how much was the domain cost or some words about this acquisition?
- jonas_kgomo 7y agoI used to train AI to help researchers find more relevant papers at http://iris.ai http://iris.ai This was nothing more than just classifying. Would this kind of opportunity be available for data remotaskers at Scale. Best regards for groundbreaking work