Scale AI lays off 14% of workers, largely in information labeling enterprise

Knowledge labelling startup Scale AI is shedding 200 workers, roughly 14% of its workers, and chopping ties with 500 of its world 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 workers that Scale AI had too shortly scaled its core information labeling enterprise — by which the startup provided 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 models.

Like different AI startups which have been reverse acquihired, resembling 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 information prospects reduce ties with the startup.