The US Labor Department is looking into startup Scale AI, backed by Nvidia
The California-based company said on Thursday that the US Department of Labor is looking into whether Scale AI, a data labeling business supported by tech behemoths Nvidia, Amazon, and Meta, complies with the Fair Labor Standards Act.
According to the firm, the inquiry, which was started about a year ago during the administration of former President Joe Biden, examines Scale AI’s adherence to fair wage policies and working conditions.
The firm has been working with the department for the past year to explain the nascent artificial intelligence sector and its business strategy. Scale AI, which was founded in 2016, offers enormous volumes of precisely labeled data, which is essential for training complex tools like ChatGPT from OpenAI. With contributors in over 9,000 cities and towns, it also offers a forum for researchers to share knowledge about artificial intelligence.
According to a spokeswoman, we have devoted teams to ensure individuals are adequately paid and feel encouraged, and the feedback we receive from contributors is overwhelmingly good. According to the firm, 90% of payment-related questions are answered within three days, and almost all donor payments are fulfilled on schedule.
The business, with clients like Microsoft, Morgan Stanley, and AI companies OpenAI and Cohere, was valued at $14 billion in a late-stage investment round last year.
