Knowledge labelling startup Scale AI is shedding 200 staff, roughly 14% of its workers, and reducing 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 informed workers that Scale AI had too rapidly scaled its core information labeling enterprise — wherein the startup equipped AI labs with labeled, structured information to coach AI fashions. Droege stated within the memo that Scale AI would workers up round its enterprise and authorities gross sales items.
Like different AI startups which were reverse acquihired, corresponding 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 information clients minimize ties with the startup.
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