The US Department of Labor is investigating Scale AI, a data labelling startup backed by Nvidia, Amazon, and Meta, over its pay practices and working conditions, according to Reuters.
The California-based company has since confirmed the probe, which began nearly a year ago, and said it has been cooperating with officials to explain its business model and the AI industry.
Founded in 2016, Scale AI provides high-quality labeled data essential for training artificial intelligence systems like OpenAI’s ChatGPT. It also runs a platform for AI research collaboration, with contributors from over 9,000 locations worldwide.
The company, valued at $14 billion last year, insists it prioritizes fair pay. It says nearly all payments are made on time and that 90% of payment-related queries are resolved within three days.
Clients include OpenAI, Microsoft, and Morgan Stanley