The U.S. Department of Labor is investigating Scale AI, a data-labeling startup with backing from technology giants Nvidia, Amazon, and Meta. The company confirmed the investigation, which focuses on Scale AI’s adherence to fair pay practices and working conditions. The investigation was initiated nearly a year ago, under the previous Biden administration.
Scale AI, headquartered in California, provides large quantities of accurately labeled data. This data is crucial for training advanced AI tools such as OpenAI’s ChatGPT. The company stated that over the past year, it has cooperated with the Department of Labor to clarify its business model within the context of the evolving artificial intelligence industry.
Founded in 2016, Scale AI also offers a platform for researchers to share AI-related information, with contributors in over 9,000 cities and towns. A spokesperson for Scale AI emphasized the positive feedback received from contributors, stating, “The feedback we get from contributors is overwhelmingly positive, and we have dedicated teams to ensure people are paid fairly and feel supported.”
The company reports that nearly all contributor payments are made on time. Additionally, Scale AI resolves 90% of payment-related inquiries within three days. Last year, the startup achieved a valuation of $14 billion in a late-stage funding round. Its clients include prominent AI firms such as OpenAI and Cohere, as well as Microsoft and Morgan Stanley.
