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2w ago

Scale AI Cuts 700 Jobs as Data Exposure Spurs Client Doubts

A security lapse exposing at least 85 confidential training documents has prompted major AI partners to reevaluate their relationships.

Scale AI logo
Vancouver hosted one of the world’s top AI research conferences this week—drawing thousands of PhDs, professors, and Big Tech recruiters.
A pedestrian walks past technology startup Scale AI office in San Francisco. The company laid off 14% of its workforce just weeks after Meta invested $14.3 billion and hired its CEO Alexndr Wang.
Scale AI is laying off 14 percent of its workforce.

Overview

  • Scale AI trimmed about 14% of its workforce by laying off 200 full-time employees and 500 contractors under a GenAI-focused restructuring plan.
  • Interim CEO Jason Droege attributed the job cuts to rapid GenAI expansion that created bureaucratic layers and missed shifting market needs.
  • Meta’s June investment of $14.3 billion for a 49% nonvoting stake ushered founder Alexandr Wang into its superintelligence lab while preserving Scale’s autonomy.
  • A recent probe uncovered at least 85 publicly accessible Google Docs containing sensitive client and contractor information related to AI training.
  • Major AI developers have begun reassessing their partnerships with Scale AI and exploring rival data-labeling firms over trust concerns.