Information-labeling startup Scale AI is shedding 200 staff, roughly 14% of its employees, and reducing ties with 500 of its world contractors, Bloomberg reported on Wednesday. The cuts come only a month after Meta employed Scale AI’s CEO in a $14.3 billion deal.
In a memo obtained by Bloomberg, interim CEO Jason Droege instructed employees that Scale AI had too shortly scaled its core data-labeling enterprise — wherein the startup equipped AI labs with labeled, structured knowledge to coach AI fashions. Droege mentioned within the memo that Scale AI would employees up round its enterprise and authorities gross sales items.
Like different AI startups which have been reverse acqui-hired, comparable to Inflection, plainly Scale AI now has to pivot from the enterprise that put it on the map. In gentle of Meta’s funding, a number of of Scale AI’s largest knowledge prospects reduce ties with the startup.
