Mode Inc Buys Apps to Pay Users for AI Training Data

A new marketplace for AI training data

Mode Inc, a startup founded in 2019, has acquired two more consumer applications—Trimbox, an inbox management tool, and QR Code Reader—as part of an aggressive expansion strategy to connect everyday users with AI companies hungry for training data. The deals bring Mode's total acquisitions to seven in the past year, according to details first reported by Business Insider.

The company now operates a portfolio reaching more than 100 million monthly users who exchange personal data—including purchase receipts, streaming activity, wearable device information, and potentially photo libraries—for cash or rewards. CEO Dan Novaes told Business Insider the company has distributed $1 billion in earnings, savings, and incentives to date.

Why it matters

As AI labs face mounting legal challenges over unauthorized use of copyrighted content, consent-based data collection could become a requirement rather than an option. Mode's model offers a structured alternative to scraping public internet data, potentially reshaping how companies source the massive datasets needed to train next-generation AI systems. The approach also represents a direct monetization path for the personal information users currently generate without compensation.

Beyond gig work platforms

Mode positions itself differently from established data labeling services like Scale AI or Mechanical Turk, which rely on contractors performing discrete tasks. Instead, Novaes described Mode's approach as capturing data from activities users already perform daily—uploading receipts, managing emails, or scanning QR codes.

The company serves AI labs with specific data requirements. Novaes shared one recent request: millions of documents containing handwriting, such as doctors' notes or service receipts. Mode fulfilled the order by sending a single notice to its user base requesting samples.

Acquisition strategy at scale

Rather than building a single viral application, Mode pursues what Novaes called an aggregation strategy. "There are two ways to get to a billion monthly active users," he explained. "You can create the next Telegram or Twitter, or you can acquire 1,000 apps that have a million monthly active users each."

The company has raised over $80 million through crowdfunding and Novaes said he plans to take Mode public within two years. He indicated the company is exploring acquisition of an app that would make users' photo libraries available for AI training purposes.

Novaes said he expects demand for consent-based data to increase as legal scrutiny intensifies around AI companies' content usage, citing recent lawsuits against Anthropic and Perplexity as examples of the regulatory pressure facing the industry.

Business Insider first reported these details.