Labour probe launched into Scale AI’s pay and working conditions
Major tech investors, including Nvidia and Meta, back Scale AI amid ongoing labour scrutiny.
The United States Department of Labor is investigating Scale AI, a data labeling startup backed by Nvidia, Amazon, and Meta, for its compliance with fair pay and working conditions under the Fair Labor Standards Act.
The inquiry began nearly a year ago during Joe Biden’s presidency, with officials examining whether the company meets federal labour regulations. Scale AI has been cooperating with the department to clarify its business practices and the evolving nature of the AI sector.
Founded in 2016, Scale AI plays a crucial role in training advanced AI models by providing accurately labeled data. The company also operates a platform where researchers exchange AI-related insights, with contributors spanning over 9,000 locations worldwide.
In response to the investigation, a company spokesperson stated that the majority of payments to contributors are made on time, with 90% of payment-related inquiries resolved within three days.
Valued at $14 billion following a late-stage funding round last year, Scale AI serves major clients such as OpenAI, Cohere, Microsoft, and Morgan Stanley.
The company insists that contributor feedback is overwhelmingly positive and maintains that it prioritises fair pay and support for its workforce.
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