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Home»Finance»US Labor Department investigating Nvidia, Amazon-backed startup Scale AI
Finance

US Labor Department investigating Nvidia, Amazon-backed startup Scale AI

March 7, 2025No Comments2 Mins Read
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US Labor Department investigating Nvidia, Amazon-backed startup Scale AI
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(Reuters) – The U.S. Division of Labor is investigating Scale AI, an information labeling startup backed by tech giants Nvidia (NVDA), Amazon (AMZN) and Meta (META), for its compliance with the Honest Labor Requirements Act, the California-based agency stated on Thursday.

The investigation is trying into Scale AI’s compliance with truthful pay practices and dealing situations and was initiated practically an yr in the past below the previous President Joe Biden’s administration, the corporate stated.

NasdaqGS – Delayed Quote • USD

At shut: March 6 at 4:00:01 PM EST

NVDA AMZN META

The startup stated during the last yr it has labored with the division to elucidate its enterprise mannequin and the rising synthetic intelligence business.

Based in 2016, Scale AI offers huge quantities of precisely labeled knowledge, which is pivotal for coaching subtle instruments like OpenAI’s ChatGPT.

It additionally offers platform for researchers to change AI-related data, with contributors in additional than 9,000 cities and cities.

The Department of Labor headquarters is seen in Washington, D.C.
The Division of Labor headquarters is seen in Washington, D.C.

“The suggestions we get from contributors is overwhelmingly optimistic, and we have now devoted groups to make sure persons are paid pretty and really feel supported,” a spokesperson stated.

Almost all contributor funds are made on time and the corporate resolves 90% of payment-related inquiries inside three days, the corporate stated.

The startup was valued at $14 billion in a late-stage funding spherical final yr and counts AI companies OpenAI and Cohere, in addition to Microsoft Morgan Stanley amongst its shoppers.

(Reporting by Kritika Lamba in Bengaluru; Modifying by Arun Koyyur)

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