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Chronicles

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Docs: US data labeling companies, like Surge AI and Mercor, that sell training datasets to US AI labs and the government are also selling them to Chinese labs

The same Silicon Valley startups supplying OpenAI, Anthropic and the U.S. government are also selling AI training datasets …

Forbes Anna Tong

Context & Ripple Effects

The related coverage had already exposed a control gap: OpenAI and Google were providing advanced AI services to Singapore-based subsidiaries of Alibaba, Baidu, and Tencent in a cross-border model-sales channel. The new reporting extends that tension from model access to the training-data vendors serving U.S. labs and the U.S. government.

Surge AI and Mercor now sit at the overlap of commercial AI procurement and geopolitical controls, because the same dataset suppliers serve OpenAI, Anthropic, U.S. government customers, and Chinese labs.

First-order effects

  • Surge AI and Mercor gain Chinese-lab customers alongside their U.S. lab and government business, making their customer-screening and dataset-access practices immediately consequential to all of those buyers.
  • OpenAI, Anthropic, and U.S. government customers must assess whether shared suppliers fit their own data-procurement and security requirements.

Second-order effects

  • U.S. AI labs and government buyers are likely to push dataset vendors for clearer customer segmentation, audit rights, or procurement restrictions as model-access scrutiny reaches upstream suppliers.
  • Chinese labs gain another commercial route to training-data services while cheaper Chinese models are already pressuring U.S. model pricing, increasing the strategic importance of non-compute inputs.

Third-order effects

  • If policymakers treat training datasets as strategically significant alongside advanced models, AI export-control debates will broaden from model endpoints to the vendor networks that prepare training inputs.
  • The AI supply chain may split into more explicitly state-compatible data providers and cross-border commercial providers, raising compliance burdens for vendors that sell to both government-linked and global customers.

The trend: AI competition is shifting geopolitical scrutiny beyond model access toward the data, services, and suppliers that determine who can train capable systems.

Discussion

  • @alexandr_wang Alexandr Wang on x
    concerning that data companies serving the US government (mercor, surge) are also working with Chinese AI labs. serving the US government should not be a commercial convenience, it must be a bedrock principle for startups.
  • @joeymannarino Joey Mannarino on x
    So, Mercor is reportedly helping Chinese AI companies while also securing work from the U.S. government. Per Forbes, Mercor works with Tencent and Alibaba and has hired an engagement manager specifically for China. Tencent has been designated by the Pentagon as associated with
  • @aakashsabharwal Aakash Sabharwal on x
    American companies should not be selling data to Chinese AI labs. @scale_AI doesn't do this work, and we have turned down revenue because of it. The companies that do are undermining American AI leadership and risking national security.
  • @jordanschneider Jordan Schneider on x
    surprised this took this long to break
  • @jason @jason on x
    Is this why China is catching up so quickly?
  • @annatonger Anna Tong on x
    The AI arms race isn't just being fought over Nvidia chips. Chinese labs are matching OpenAI and Anthropic by purchasing the exact same data from US vendors like @mercor_ai and Surge AI (who also work with the US federal govt) https://www.forbes.com/... [image]
  • @ksorbs Kevin Sorbo on x
    why are we actively helping China? stop selling out to foreign countries. [image]
  • @danielremler Daniel Remler on x
    Significant vulnerability for American AI here—one reason why Chinese developers benefit from adversarial distillation is because they don't have indigenous firms like Scale and Mercor with expert data. If they can just buy the datasets directly...