"The city of San Francisco is investigating Scale AI over its labor practices, a Scale AI spokesperson confirmed to Business Insider. Scale AI, which is based in San Francisco, relies heavily on a vast army of people it considers contractors to train tech companies' latest artificial intelligence models. Meta bought almost half of Scale AI for $14 billion in a blockbuster AI deal this summer."
"The city's investigation is being led by its Office of Labor Standards Enforcement (OLSE), which oversees sick leave, minimum wage, overtime pay, and other regulations for San Francisco workers. Scale AI spokesperson Natalia Montalvo told Business Insider that the startup is cooperating with the OLSE to provide the information they need and that Scale AI is fully compliant with local laws and regulations."
"San Francisco's investigation into Scale AI is limited to city residents who worked for the startup - including remotely - over the last three years, according to a now-deleted notice posted by Maura Prendiville, a compliance officer at the OLSE, in a subreddit for Outlier AI, a gig work platform run by Scale AI. While the notice didn't specify what types of labor practices the city is investigating, it did mention that investigators are looking to speak to people who worked for Scale AI as "taskers" and "freelancers" rather than the startup's full-time employees."
San Francisco's Office of Labor Standards Enforcement is investigating Scale AI's labor practices focused on city residents who worked for the company, including remotely, over the past three years. Scale AI relies on thousands of contractors to label and train data for leading AI models and received a major investment when Meta bought nearly half the company for $14 billion. The OLSE enforces sick leave, minimum wage, overtime, and other workplace regulations. Scale AI says it is cooperating with investigators and asserts full compliance with local laws. The investigation does not itself indicate a violation and the OLSE declined further comment.
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