Scale AI is being investigated by the US Department of Labor

image via TechCrunch

March 6, 2025, 9:27 PM

• •The U.S. Department of Labor (DOL) is investigating the data-labeling startup Scale AI for compliance with the Fair Labor Standards Act.
• •The investigation has been active since at least August 2024.
• •Scale AI spokesperson Joe Osborne said that the investigation was initiated during the previous presidential administration and that Scale AI felt that its work building, testing, and evaluating AI was misunderstood by regulators then.

The U.S. Department of Labor is investigating the data-labeling startup Scale AI for compliance with the Fair Labor Standards Act. The investigation has been active since at least August 2024 and could find in favor of the company or be dismissed. Scale AI is based in San Francisco and was valued last year at $13.8 billion. It relies on an army of workers it categorizes as contractors to do essential AI work, like labeling images for Big Tech and other organizations.

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