Mode Inc Expands User Base to Pay Consumers for AI Training Data

AI training startup Mode Inc has expanded its reach to over 100 million monthly users following the acquisition of two consumer applications: Trimbox, an inbox management app, and QR Code Reader, a code scanning app. These recent purchases bring the company's total acquisitions in the past year to seven.

Unlike platforms that focus on gig workers for data collection, Mode Inc's model centers on compensating everyday consumers for their personal data. This includes various forms of information such as photos, receipts from online or in-store purchases, streaming data, and data from wearable devices.

Mode Inc CEO Dan Novaes, who founded the company in 2019, indicated that this approach aligns with the growing demand from AI labs for consented data. Novaes believes increased legal scrutiny surrounding AI companies' use of online content, referencing lawsuits against Anthropic and Perplexity, will drive the need for consent-based data collection. He cited a specific request from an AI lab client for millions of documents containing handwriting, such as doctors' notes or oil change receipts, which Mode Inc facilitated through its user base.

The company has reportedly distributed $1 billion in earnings, savings, and incentives to its users to date. Novaes has also raised over $80 million through crowdfunding and plans to take Mode Inc public within the next two years.

Mode Inc's broader strategy involves building a portfolio of niche applications to collectively achieve a massive scale of users. Novaes is exploring options like an app that could enable users to make their photo libraries available for AI training, aiming for billions of monthly active users by acquiring numerous smaller apps.

(Source: Business Insider)