Scale AI is suing a former employee and rival Mercor, alleging they tried to steal its biggest customers  

Scale AI, which helps tech companies prepare data to train their AI models, filed a lawsuit against one of its former sales employees and its rival Mercor on Wednesday. The suit claims the employee, who was hired by Mercor, “stole more than 100 confidential documents concerning Scale’s customer strategies and other proprietary information,” according to…

Read More

Scale AI is being investigated by the US Department of Labor

The U.S. Department of Labor (DOL) is investigating the data-labeling startup Scale AI for compliance with the Fair Labor Standards Act, TechCrunch has learned. That’s a federal law that regulates unpaid wages, misclassification of employees as contractors, and illegal retaliation against workers. The investigation has been active since at least August 2024, a document seen…

Read More