Knowledge-labeling startup Scale AI is shedding 200 workers, roughly 14% of its employees, and chopping ties with 500 of its international 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 — by which the startup provided AI labs with labeled, structured knowledge to coach AI fashions. Droege stated within the memo that Scale AI would employees up round its enterprise and authorities gross sales items.
Like different AI startups which were reverse acqui-hired, reminiscent of Inflection, it appears that evidently 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 clients lower ties with the startup.
