US Labor Department Investigates Scale AI for Fair Labor Standards Compliance

The probe examines worker classification and pay practices at the $14 billion AI data labeling startup backed by Nvidia, Amazon, and Meta.

The U.S. Department of Labor is investigating Scale AI for compliance with the Fair Labor Standards Act, focusing on worker classification and fair pay practices.
The investigation, initiated during the Biden administration in 2024, remains ongoing and has not yet determined any violations by the company.
Scale AI, valued at $14 billion, relies on a global network of contractors to provide labeled data essential for training AI tools like OpenAI's ChatGPT.
The company faces lawsuits from former workers alleging underpayment and misclassification as contractors, which Scale AI strongly disputes.
Scale AI recently secured a multimillion-dollar defense contract, raising questions about potential impacts from the ongoing investigation.