The U.S. Department of Labor is looking into Scale AI, a startup that specializes in data labeling and has backing from major tech companies like Nvidia, Amazon, and Meta. The investigation focuses on whether Scale AI is following the Fair Labor Standards Act, particularly concerning fair pay and working conditions. This inquiry began nearly a year ago during the previous administration under President Joe Biden.
Scale AI, founded in 2016, plays a crucial role in the artificial intelligence sector by providing accurately labeled data, which is essential for training advanced AI models, including tools like OpenAI’s ChatGPT. The company also offers a platform for researchers to share AI-related information, with contributors from over 9,000 locations.
In response to the investigation, Scale AI has been cooperating with the Department of Labor, explaining its business model and the evolving AI industry. A spokesperson for the company stated that feedback from contributors has been largely positive. They emphasized that nearly all payments to contributors are made on time, and they resolve 90% of payment-related issues within three days.
Last year, Scale AI was valued at $14 billion during a late-stage funding round. It serves a variety of clients, including notable firms like OpenAI, Cohere, and Microsoft. As the company continues to grow, it remains focused on ensuring that its contributors are treated fairly and feel supported in their work.