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Tribe AI Scales Up Amid Skyrocketing Demand

4 min read

In a fast-changing world where artificial intelligence (AI) continues to gain importance, Tribe AI has decided to raise venture capital for the first time. The company, founded by Jaclyn Rice Nelson and Noah Gale in 2019, has relied solely on its revenue for growth until now. However, the surge in demand for AI services, especially after the release of ChatGPT in 2022, has shifted their strategy. This marks a significant change, aiming to keep up with the growing market needs.

Tribe AI’s Early Struggles and Vision

When Jaclyn Rice Nelson and Noah Gale founded Tribe AI in 2019, they had to persuade companies about the importance of having an AI strategy. Initially, it wasn’t easy. Companies were not yet convinced that AI would play a crucial role in their operations. However, that soon changed with the release of ChatGPT in 2022, which triggered a significant rise in demand for AI services. Gale described this period as a “massive boom.”

Rice Nelson, who serves as Tribe’s CEO, previously worked as a Growth VP at a major investment firm. She observed that various successful companies were seeking Google’s help with data science and machine learning. Even leading tech companies found it challenging to leverage AI technology without substantial assistance. Meanwhile, Gale noticed a similar trend in his job at a software development platform, prompting the two to establish Tribe AI as a solution.

From Hiring Talent to Full AI Services

Tribe AI began as a company focused on helping businesses contract AI talent. It has since evolved into a comprehensive AI services firm. Today, Tribe AI relies on a network of over 500 contractors to develop products and carry out projects for its clients. This approach allows them to match specialized expertise with the specific needs of each project.

The company prides itself on being platform-agnostic, meaning it is not tied to any one technology platform. They have partnerships with major cloud providers like AWS, Azure, and Google, as well as with significant language models such as OpenAI and Anthropic. Notable clients include MyFitnessPal and New Relic, who benefit from Tribe AI’s versatile approach.

Remarkable Growth Amid Rising Demand

Tribe AI has been bootstrapped since its inception, relying solely on its own revenue for growth. The company has reported an eight-figure revenue run rate, which is expected to double this year. This marked success can be attributed in part to their unique model of contracting talent as needed. By doing so, Tribe AI keeps payroll costs low while maintaining flexibility and scalability.

To meet the surging demand for AI services, Tribe AI recently raised $3.25 million in a seed round. Bryce Roberts, the founding partner at Indie, led the investment. The round also saw participation from Tribe AI network members, customers, and angel investors. This capital will help Tribe AI expand its team and develop tools to automate and streamline its projects, making their processes even more efficient.

Adapting to a Changing Market Landscape

The arrival of generative AI has been a game changer for Tribe AI. According to Rice Nelson, the increased market demand was palpable. Companies and partners alike were eager for AI solutions, causing an influx of requests that was difficult to manage. This heightened demand validated Tribe AI’s mission and underscored the need for their expertise.

Tribe AI isn’t the sole player in the AI strategy arena, facing competition from major consulting firms like McKinsey and Accenture. However, Rice Nelson believes Tribe AI has an edge due to its established presence and extensive experience in the industry. “We have been around since 2019, long before ChatGPT, and now have experience building hundreds of AI products,” she explained.

Strategic Partnerships and Client Success

Tribe AI collaborates with significant cloud providers and AI model developers to offer tailored solutions to its clients. These partnerships allow Tribe AI to remain flexible and leverage the best tools available in the market.

Clients like MyFitnessPal and New Relic have greatly benefited from Tribe AI’s expertise. By tapping into Tribe AI’s network of over 500 contractors, these companies have gained access to specialized skills and knowledge that might otherwise be difficult to source. This model not only enhances the client’s project outcomes but also keeps the costs manageable.

The company’s platform-agnostic approach ensures that they can work with a variety of technologies, providing optimal solutions without being tied to a single provider. This flexibility is a key selling point for clients looking for tailored and efficient AI solutions.

Looking Ahead: New Capital and Expansion Plans

With new capital in hand, Tribe AI plans to scale up its operations to meet the growing demand for AI services. The funds will primarily be used to hire additional staff and develop a suite of tools to automate project workflows. This will allow the team to handle more projects simultaneously and with greater efficiency.

The company also aims to build on its current success by continuously improving its service offerings and expanding its client base. The focus will be on maintaining the quality of work while growing the team and enhancing the capabilities of their AI systems.

Conclusion

Tribe AI’s journey from a small startup to a significant player in the AI services industry highlights the growing importance of AI in today’s market. With its flexible, platform-agnostic approach and a vast network of specialized contractors, Tribe AI is well-positioned for continued success and expansion.


Tribe AI’s journey from a small startup to a significant player in the AI services industry highlights the growing importance of AI in today’s market. With its flexible, platform-agnostic approach and a vast network of specialized contractors, Tribe AI is well-positioned for continued success and expansion.

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