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Siddharth: Reasoning models ended demand for simple AI data factories

Jonathan Siddharth · Inside The $2.2B AI Research Accelerator | Turing · Sourcery with Molly O'Shea · Oct 10, 2025 · at 12:02

Jonathan Siddharth, CEO of Turing, describes how reasoning models like OpenAI o1 and DeepSeek shifted the AI training data industry toward research collaboration.

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“This industry had a huge shift after the reasoning models came out late last year, O-one being the first. The shift is, before the reasoning models, this industry needed simple data. Gobs and gobs of simple data. You needed a data factory. Or, ah, this industry needed somebody to find people really fast. After the reasoning models came out, the game completely changed. This is like after O-one and deep seek. Now what the labs need is not a data factory. It's not a talent marketplace. The labs need a strategic research partner, somebody who can collaborate directly with their researchers to understand where the models are weakened today and strategically custom engineer data to improve the model's performance.”

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