Scale AI lays off 14% of employees, largely in knowledge labelling enterprise

Information labelling startup Scale AI is shedding 200 staff, roughly 14% of its employees, 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 advised employees that Scale AI had too rapidly scaled its core knowledge labeling enterprise — wherein the startup equipped 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 models.

Like different AI startups which have been reverse acquihired, akin to Inflection, 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.