Nvidia and Amazon-Backed Scale AI Under Investigation for Labor Law Compliance

Image Credit: Reuters

The U.S. Department of Labor is investigating Scale AI, a data labeling startup backed by major tech companies like Nvidia, Amazon, and Meta, to assess its compliance with the Fair Labor Standards Act, the company confirmed on Thursday.

The investigation, which began nearly a year ago during the administration of former President Joe Biden, focuses on Scale AI's adherence to fair pay standards and working conditions. The company stated it has been cooperating with the department over the past year, providing details about its business model and the emerging AI industry.

Founded in 2016, Scale AI specializes in providing large volumes of accurately labeled data, which is crucial for training advanced AI tools like OpenAI's ChatGPT. It also offers a platform for researchers to share AI-related information, with contributors from over 9,000 cities and towns.

The company emphasized that most feedback from contributors is highly positive, and it has dedicated teams to ensure fair pay and support for workers. Nearly all contributor payments are made on time, and the company resolves 90% of payment-related issues within three days.

Last year, Scale AI was valued at $14 billion in a funding round, and its clients include AI companies like OpenAI and Cohere, as well as major firms like Microsoft and Morgan Stanley.

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author