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AI NewsIndian IT’s Revenue Per Employee is Rising. But is AI Getting Too Much Credit?

Indian IT’s Revenue Per Employee is Rising. But is AI Getting Too Much Credit?

1:33 PM IST · August 21, 2026

Indian IT’s Revenue Per Employee is Rising. But is AI Getting Too Much Credit?

The growth in revenue per employee is raising questions over whether the sector is witnessing a genuine structural shift or simply getting leaner.

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Indian IT’s Revenue Per Employee is Rising. But is AI Getting Too Much Credit?

Indian IT’s Revenue Per Employee is Rising. But is AI Getting Too Much Credit?

The growth in revenue per employee is raising questions over whether the sector is witnessing a genuine structural shift or simply getting leaner.

1 hour ago

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How Hex Thinks Shared Context Will Unlock Enterprise AI ROI

How Hex Thinks Shared Context Will Unlock Enterprise AI ROI

As enterprises move beyond AI pilots, shared context and open infrastructure will determine whether intelligent agents deliver measurable business value at scale.

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GitHub Adds 3 Million CPU Cores Post Outage, Monthly Commits Double Since April

GitHub Adds 3 Million CPU Cores Post Outage, Monthly Commits Double Since April

Monthly commits have more than doubled from 1.4 billion in April to 2.9 billion in August, while GitHub has accelerated its migration to Microsoft Azure.

1 hour ago

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AI data startup Micro1 reaches $500M gross run rate amid AI training boom

AI data startup Micro1 reaches $500M gross run rate amid AI training boom

The near-bottomless demand for unique AI training data from top labs and corporations is driving a massive boom for a cohort of data-labeling startups. One of these fast-growing businesses is Micro1, a four-year-old startup that expanded its gross annual run rate from $100 million to $500 million over the past eight months, according to a person familiar with the company. Like its peers that hire domain experts such as doctors, lawyers, and scientists on a contract basis, Micro1 retains roughly 60% to 70% of that figure, putting its net annual run rate between $150 million and $200 million. While Micro1 still lags competitors like Mercor (which hit$2 billionin gross annualized revenue this summer) and Handshake (which reached$1 billionearlier this year), the startup’s revenue growth shows that there is more than enough demand to support multiple players supplying AI training data. The rapid growth is bound to continue, with some researchershypothesizingthat future AI spending on data could rival spending on compute. That outlook bodes well for Micro1, which is seeing its contract sizes grow at an accelerated pace and expects its margins to expand over time. The startup is increasingly generating synthetic data without human involvement, such as by creating automated descriptions of video content. Additionally, some of the data it generates can be sold to multiple customers, driving gross margins for this “off-the-shelf” data as high as 80% to 90%, a person familiar with the startup’s finances told TechCrunch. Selling the same datasets to multiple clients has sparked recent controversy, withcritics arguingthat distributing off-the-shelf data to Chinese AI developers helps make their models as powerful as top U.S. models. Micro1’s founder, Ali Ansari,said last month on Xthat unlike some of its competitors, the startup doesn’t sell its data to Chinese model makers. “Some human data companies work with foreign adversaries. [A]nd the results show today in Kimi K3. We believe it’s shameful to claim American AI dominance desires while selling millions worth of data to countries that we are in adversarial competition with.” Like Mercor, Micro1 began as an AI recruiting startup. But after noticing that data-labeling clients were using his AI platform to vet and recruit engineers for annotation, Ansari decided to pivot and enter the data-labeling business, too. Ansaripreviouslytold TechCrunch that in addition to having its experts evaluate model outputs — a concept known as reinforcement learning gyms — the company is building a robotics pre-training dataset by having hundreds of generalists record everyday object interactions in their homes. Micro1 raised its Series A at a$500 millionvaluation last September, and TechCrunch understands that the startup may have recently raised another round at a significantly higher valuation. Micro1 didn’t respond to a request for comment.

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