Manu Sharma, founder and CEO of Labelbox, explains how frontier AI training data has evolved far beyond simple labeling to sophisticated reinforcement learning environments where domain experts create "gyms" for models to develop complex skills. With every Western frontier lab now spending over a billion dollars annually on training data, the conversation traces the shift from supervised learning to reinforcement learning from verifiable rewards, particularly for coding, mathematical reasoning, and computer use. Sharma reveals how Labelbox operates as a vertically integrated data factory, conducting over 2,000 AI-powered expert interviews daily and paying top specialists more than $250,000 annually. The discussion provides essential insights into the red-hot training data market that's reshaping AI development following major deals like Meta's $15B acquisition of Scale AI.

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