Scale Ai Lays Off 14% Of Staff, Largely In Data Labelling Business

Data labelling startup Scale AI is laying disconnected 200 employees, astir 14% of its staff, and cutting ties pinch 500 of its world contractors, Bloomberg reported connected Wednesday. The cuts travel conscionable a period aft Meta hired Scale AI’s CEO successful a $14.3 cardinal deal.

In a memo obtained by Bloomberg, interim CEO Jason Droege told unit that Scale AI had excessively quickly scaled its halfway information labeling business — successful which nan startup supplied AI labs pinch labeled, system information to train AI models. Droege said successful nan memo that Scale AI would unit up astir its endeavor and authorities income units.

Like different AI startups that person been reverse acquihired, such arsenic Inflection, it seems that Scale AI now has to pivot from nan business that put it connected nan map. In ray of Meta’s investment, several of Scale AI’s largest information customers trim ties pinch nan startup.