Knowledge-labeling startup Scale AI is laying off 200 employees, roughly 14% of its workers, and reducing ties with 500 of its world contractors, Bloomberg reported on Wednesday. The cuts come only a month after Meta hired Scale AI’s CEO in a $14.3 billion deal.
In a memo obtained by Bloomberg, interim CEO Jason Droege instructed workers that Scale AI had too rapidly scaled its core data-labeling enterprise — wherein the startup equipped AI labs with labeled, structured information to coach AI fashions. Droege mentioned within the memo that Scale AI would workers up round its enterprise and authorities gross sales models.
Like different AI startups which were reverse acqui-hired, such as Inflection, it appears that evidently Scale AI now has to pivot from the enterprise that put it on the map. In mild of Meta’s funding, several of Scale AI’s largest data customers cut ties with the startup.