Deccan AI, a startup focused on post-training data and evaluation services for artificial intelligence (AI) models, has successfully raised $25 million in its Series A funding round. The round saw participation from prominent investors, including A91 Partners, Susquehanna International Group, and Prosus Ventures.
Founded in October 2024, Deccan AI is increasingly becoming a key player in the burgeoning demand for AI training services, which has grown alongside the expansion of large language models. While major AI labs like OpenAI and Anthropic develop core models internally, they often outsource post-training tasks such as data generation, evaluation, and reinforcement learning to enhance system reliability in real-world applications.
Deccan AI offers a variety of services aimed at improving AI models’ coding and interaction capabilities, especially with external tools like APIs. The company collaborates closely with leading AI labs to provide expert feedback, evaluations, and to create reinforcement learning environments. Additionally, Deccan is innovating in fields beyond textual understanding, delving into “world models” that integrate robotics and vision systems.
Currently headquartered in the San Francisco Bay Area with a significant operations team based in Hyderabad, Deccan AI employs approximately 125 staff and boasts a network of over one million contributors, including students and domain experts. Around 5,000 to 10,000 of these contributors are actively engaged monthly, highlighting a flexible and extensive workforce. About 10% of Deccan’s contributors hold advanced degrees, which can increase based on project requirements.
The company’s clientele includes large names like Google DeepMind and Snowflake, and it manages dozens of projects simultaneously. However, CEO Rukesh Reddy notes that maintaining the quality of post-training work is an ongoing challenge, especially since errors can severely impede model performance in production settings.
The sector has faced scrutiny over working conditions and pay, particularly with gig workers involved in data generation. Deccan offers varying compensation, ranging from $10 to $700 an hour, with top contributors potentially earning up to $7,000 monthly.
Most of Deccan’s contributors are based in India, a strategic choice that enables the company to manage quality more effectively. Although competitors source talent globally, Deccan focuses predominantly on India, minimising operational complexities. Despite this, the company is beginning to tap into talent from other regions, particularly for niche areas such as geospatial data and semiconductor design.
Reflecting a modern approach, Deccan AI positions itself as a “born GenAI” company, concentrating on high-skill operations from its inception, as opposed to conventional data labeling firms that traditionally focused on simpler tasks. According to Reddy, Deccan’s growth trajectory has been remarkable, with the company reportedly achieving a tenfold increase in its revenue over the past year, predominantly driven by its top-five customers.
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