Overview

• Scale AI cut roughly 200 full-time employees and ended contracts with about 500 global contractors, representing 14% of its workforce
• Interim CEO Jason Droege said the company had overinvested in GenAI capacity, leading to bureaucratic redundancies and mission confusion
• A security lapse exposed at least 85 Google Docs containing sensitive client information and internal project notes
• Clients including Google and OpenAI are reconsidering or pausing partnerships in response to the breach and Scale AI’s closer ties with Meta
• Despite partnership pauses, Scale AI remains well-funded through Meta’s $14.3 billion, 49% stake and plans to refocus hiring on enterprise and government services later this year