US Labor Department Investigates Scale AI
The U.S. Department of Labor is currently investigating Scale AI, a data labeling startup with backing from prominent tech giants like Nvidia, Amazon, and Meta. The investigation, confirmed by the California-based company on Thursday, focuses on Scale AI’s adherence to the Fair Labor Standards Act, specifically regarding fair pay practices and working conditions.
The probe, initiated almost a year ago during the administration of former President Joe Biden, reflects a growing scrutiny of the artificial intelligence industry and its labor practices.
Scale AI provides vast amounts of accurately labeled data, a crucial element in training sophisticated AI tools such as OpenAI’s ChatGPT. The company also offers a platform for researchers to share AI-related information, with contributors located in over 9,000 cities and towns worldwide.
A spokesperson for Scale AI stated, “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 also reports that nearly all contributor payments are made on time, and the company resolves 90% of payment-related inquiries within three days.
Scale AI, founded in 2016, secured a $14 billion valuation in a late-stage funding round last year. Its clientele includes AI firms OpenAI and Cohere, as well as Microsoft and Morgan Stanley.
