The US Department of Labor is actively investigating Scale AI, a data labeling startup supported by NVIDIA, Amazon, and Meta, for compliance with the Fair Labor Standards Act.
The investigation into Scale AI’s practices regarding fair pay and working conditions was initiated almost a year ago during the previous administration of President Joe Biden. This California-based company, known for providing extensively labeled data critical for training tools like OpenAI’s ChatGPT, has been working with the department to clarify its business model amid the evolving artificial intelligence sector.
Scale AI’s platform facilitates the exchange of AI-related information among researchers in over 9,000 locations globally. The startup has emphasized its commitment to fair compensation and support for its contributors. According to Scale AI, feedback from contributors has been largely positive, and they have systems in place to ensure timely payments. They claim that nearly all payments are made promptly, and the company resolves 90% of payment-related inquiries within three days.
In a recent funding round, Scale AI was valued at $14 billion. This positions the startup as a significant player in the AI industry, with a client list that includes notable firms such as OpenAI, Cohere, and Microsoft.
Scale AI’s spokesperson has highlighted the company’s diligent efforts to maintain fair labor standards and its ongoing collaboration with the Labor Department. The spokesperson stated that their dedicated teams focus on ensuring contributors are paid fairly and supported throughout their engagement with the startup.
As the US Labor Department’s investigation continues, Scale AI remains under scrutiny, with its practices in fair pay and working conditions coming to the forefront. The outcome of this investigation could have significant implications for the startup and its stakeholders.
