Scale AI
{{Short description|American data annotation company}}
{{Use mdy dates|date=April 2024}}
{{Infobox company
| name = Scale AI, Inc.
| native_name =
| logo = Scale AI.svg
| type = Privately held company
| foundation = {{start date and age|2016}}
| location = San Francisco, California, U.S.
| founders = Alexandr Wang
Lucy Guo
| key_people = Alexandr Wang (CEO)
| owner =
| num_employees = 600 (2024)
| industry = Information technology
| subsid = Remotasks, Outlier.ai
| homepage = {{Official URL}}
| footnotes =
}}
Scale AI, Inc. is an American artificial intelligence company based in San Francisco, California. It provides data labeling and model evaluation services to develop applications for artificial intelligence.
The company’s research arm, the Safety, Evaluation and Alignment Lab (SEAL), focuses on evaluating and aligning large language models, including through initiatives such as Humanity's Last Exam, a benchmark designed to assess advanced AI systems on alignment, reasoning, and safety. Scale AI outsources data labeling through its subsidiaries, Remotasks, which focuses on computer vision and autonomous vehicles, and Outlier, which focuses on data annotation for large language models.
Scale AI's customers in the commercial sector include Etsy, General Motors, OpenAI, PayPal, Pinterest, Samsung, Toyota, and Uber.{{Citation |title=Scale AI's 22-Year Old CEO Wants to Improve the Safety of Self-Driving Cars |date=August 8, 2019 |url=https://www.bloomberg.com/news/videos/2019-08-08/scale-ai-s-22-year-old-ceo-wants-to-improve-the-safety-of-self-driving-cars-video |access-date=2024-01-14 |language=en}}{{Cite web |title=Data-labeling company Scale AI is worth $7.3 billion after new funding round |url=https://fortune.com/2021/04/13/scale-ai-valuation-new-funding-fundraising-data-labeling-company-startups-vc/ |access-date=2024-01-14 |website=Fortune |language=en}} The company also directly works with world governments, including the United States on multiple military-related projects, and with Qatar to improve the efficiency of its social programs.
On March 28th 2025, it was reported that Scale AI was seeking valuation as high as $25 billion in potential tender offer,{{Cite news |date=2025-03-28 |title=Scale AI seeking valuation as high as $25 billion in potential tender offer, Business Insider reports |url=https://www.reuters.com/technology/artificial-intelligence/scale-ai-seeking-valuation-high-25-billion-potential-tender-offer-business-2025-03-28/ |access-date=2025-06-06 |work=Reuters |language=en}} after it raised $1 billion at at nearly $14 billion value with Amazon funding.{{Cite web |title=Scale Valued at Nearly $14 Billion With Amazon Funding |url=https://www.bloomberg.com/news/articles/2024-05-21/scale-valued-at-nearly-14-billion-with-funding-from-amazon-amd |website=Bloomberg}}{{Cite web |title=Scale AI Expects to More Than Double Sales to $2 Billion in 2025 |url=https://www.bloomberg.com/news/articles/2025-04-02/scale-ai-expects-to-more-than-double-sales-to-2-billion-in-2025 |website=Bloomberg}}
History
Scale was founded in 2016 by Alexandr Wang and Lucy Guo through Y Combinator.{{cite news |last=Tremayne-Pengelly |first=Alexandra |title=Scale AI’s 28-Year-Old Billionaire CEO Warns About This Scarily Good Chinese Startup |url=https://observer.com/2025/01/chinas-ai-capabilities-catching-up-us-scale-ai-alexandr-wang/ |work=Observer |date=25 January 2025}} The pair previously worked together at Quora.{{Cite news |last=De Vynck |first=Gerrit |date=October 22, 2023 |title=Some tech leaders fear AI. ScaleAI is selling it to the military. |url=https://www.washingtonpost.com/technology/2023/10/22/scale-ai-us-military/ |newspaper=The Washington Post |access-date=April 19, 2024 |archive-date=March 12, 2024 |archive-url=https://web.archive.org/web/20240312145910/https://www.washingtonpost.com/technology/2023/10/22/scale-ai-us-military/ |url-status=live }} Initial investors of Scale included Dragoneer Investment Group, Tiger Global Management and Index Ventures.{{Cite web |last=Cai |first=Kenrick |date=April 11, 2023 |title=How Alexandr Wang Turned An Army Of Clickworkers Into A $7.3 Billion AI Unicorn |url=https://www.forbes.com/sites/kenrickcai/2023/04/11/how-alexandr-wang-turned-an-army-of-clickworkers-into-a-73-billion-ai-unicorn/ |access-date=April 19, 2024 |website=Forbes |language=en |archive-date=April 6, 2024 |archive-url=https://web.archive.org/web/20240406110850/https://www.forbes.com/sites/kenrickcai/2023/04/11/how-alexandr-wang-turned-an-army-of-clickworkers-into-a-73-billion-ai-unicorn/ |url-status=live }}{{Cite news |last=Vance |first=Ashlee |date=August 5, 2019 |title=Silicon Valley's Latest Unicorn Is Run by a 22-Year-Old |url=https://www.bloomberg.com/news/articles/2019-08-05/scale-ai-is-silicon-valley-s-latest-unicorn |access-date=April 19, 2024 |work=Bloomberg.com |language=en |archive-date=May 25, 2023 |archive-url=https://web.archive.org/web/20230525151956/https://www.bloomberg.com/news/articles/2019-08-05/scale-ai-is-silicon-valley-s-latest-unicorn |url-status=live }}{{Cite news |last=Loten |first=Angus |date=July 12, 2021 |title=Scale AI's Rapid Growth Reflects Widening Demand for Smart Software |url=https://www.wsj.com/articles/scale-ais-rapid-growth-reflects-widening-demand-for-smart-software-11626082201 |url-status=live |archive-url=https://web.archive.org/web/20240226165503/https://www.wsj.com/articles/scale-ais-rapid-growth-reflects-widening-demand-for-smart-software-11626082201 |archive-date=February 26, 2024 |access-date=April 19, 2024 |work=The Wall Street Journal |language=en-US}} In 2018, co-founder Guo left Scale "due to differences in product vision and road map".
In August 2019, after Peter Thiel’s Founders Fund made a $100 million investment in Scale, its valuation exceeded $1 billion and it acquired Unicorn status.
Scale contracted with the United States Department of Defense in 2020.{{Cite web |last=Jeans |first=David |date=Feb 2, 2024 |title=Scale AI Quietly Scrapped Deal With Chinese-Owned TikTok Over Security Concerns |url=https://www.forbes.com/sites/davidjeans/2024/02/02/scale-ai-tiktok-bytedance-security-concerns/ |access-date=2025-04-19 |website=Forbes |language=en}}
In May 2021, Michael Kratsios, Chief Technology Officer of the United States under the Trump administration, joined as Scale AI's managing director and head of strategy.{{cite news |last1=Soper |first1=Taylor |title=Tech Moves: Ex-Amazon leader Jeff Wilke joins Scale AI as advisor to CEO; Skilljar and Auth0 hire execs; T-Mobile board shuffle |url=https://www.geekwire.com/2021/tech-moves-ex-amazon-leader-jeff-wilke-joins-scale-ai-advisor-ceo-skilljar-auth0-hire-execs-t-mobile-board-shuffle/ |work=GeekWire |date=April 13, 2021}}
By July 2021, Scale had reached a valuation of $7 billion, after a financing led by Greenoaks, Dragoneer Investment Group and Tiger Global Management.{{Cite web |title=Scale AI's Series E: Deploying AI Across Every Industry |url=https://scale.com/blog/series-e |access-date=2025-02-27 |website=scale.com |language=en}} There was an increased demand for data labelling from clients in different industries.
In February 2022, Scale AI developed its Automated Damage Identification Service in response to the Russian invasion of Ukraine. Satellite imagery was analyzed, measuring the damage to buildings, which were then geotagged and reported to humanitarian groups.{{cite news |last=Ufberg |first=Max |title=This tool is helping Ukraine automatically detect when its buildings get damaged |url=https://www.fastcompany.com/90872848/scale-ai-automated-damage-identification-service-ukraine |work=Fast Company |date=2 May 2023}}
In May 2023, Scale AI signed a deal with the Army’s XVIII Airborne Corps, becoming the first AI company to deploy its large language model (known as Donovan) on a classified network.
In August 2023, Scale AI’s evaluation platform was used at DEF CON, a hacking convention, at its first generative AI red team event, testing models provided by various companies.{{cite news |last=Goldman |first=Sharon |title=Legions of DEF CON hackers will attack generative AI models |url=https://venturebeat.com/ai/legions-of-defcon-hackers-will-attack-generative-ai-models/ |work=VentureBeat |date=10 August 2023}}
In December 2023, Scale AI was among a list of companies that contributed to Meta Platforms’s Purple Llama initiative, a security framework for the purpose of development of open generative AI models.{{cite news |last=Columbus |first=Louis |title=Meta champions a new era in safe gen AI with Purple Llama |url=https://venturebeat.com/security/meta-champions-a-new-era-in-safe-gen-ai-with-purple-llama/ |work=VentureBeat |date=11 December 2023}}
In February 2024, Scale AI was selected by the Department of Defense to test and evaluate its large language models for military purposes under a one-year contract.{{cite news |last=Vincent |first=Brandi |title=Scale AI to set the Pentagon’s path for testing and evaluating large language models |url=https://defensescoop.com/2024/02/20/scale-ai-pentagon-testing-evaluating-large-language-models/ |work=DefenseScoop |date=20 February 2024}}
In March 2024, Scale reached a valuation of almost $13 billion after Accel led another round of funding.{{Cite web |last=Clark |first=Kate |date=March 28, 2024 |title=Scale AI Nears $13 Billion Valuation in Accel-Led Round |url=https://www.theinformation.com/articles/scale-ai-nears-13-billion-valuation-in-accel-led-round |website=The Information}} In May 2024, Scale raised an additional $1 billion with new investors including Amazon and Meta Platforms. Its valuation reached $14 billion.{{Cite web |last=León |first=Riley de |date=2024-05-21 |title=Amazon, Meta back Scale AI in $1 billion funding deal that values firm at $14 billion |url=https://www.cnbc.com/2024/05/21/amazon-meta-back-scale-ai-in-1-billion-funding-deal.html |access-date=2024-05-23 |website=CNBC |language=en |archive-date=May 23, 2024 |archive-url=https://web.archive.org/web/20240523130956/https://www.cnbc.com/2024/05/21/amazon-meta-back-scale-ai-in-1-billion-funding-deal.html |url-status=live }}
In December 2024, Scale was sued by a former employee with allegations that it was committing wage theft and misclassifying workers.{{Cite web |last=Council |first=Stephen |date=December 13, 2024 |title=SF tech startup Scale AI, worth $13.8B, accused of widespread wage theft |url=https://www.sfgate.com/tech/article/sf-tech-startup-scale-ai-sued-wage-theft-19976761.php |website=SFGATE}} The following month, a second employee filed suit against the company citing similar claims.{{Cite web |last=Rollet |first=Charles |date=2025-01-09 |title=Exclusive: Scale AI hit by its second wage theft lawsuit in less than a month |url=https://techcrunch.com/2025/01/09/scale-ai-hit-by-its-second-employee-wage-lawsuit-in-less-than-a-month/ |access-date=2025-01-11 |website=TechCrunch |language=en-US}} In January 2025, several contractors sued Scale alleging psychological harm from being exposed to toxic material, such as content related to violence and child abuse.{{cite web |last1=Rollet |first1=Charles |title=Scale AI is facing a third worker lawsuit in about a month|date=2025-01-22 |url=https://techcrunch.com/2025/01/22/scale-ai-is-facing-a-third-worker-lawsuit-in-about-a-month/ |website=TechCrunch |access-date=2025-01-24|language=en-US}}
In January 2025, it was reported in The Conversation that Scale AI and Meta had previously teamed up to create and sell Defense Llama, a large-language model product with military-style defense purposes.{{cite news |last=Schwarz |first=Elke |title=The Silicon Valley venture capitalists who want to ‘move fast and break things’ in the defence industry |url=https://theconversation.com/the-silicon-valley-venture-capitalists-who-want-to-move-fast-and-break-things-in-the-defence-industry-245778 |work=The Conversation |date=16 January 2025}} The company also took out a full-page ad in The Washington Post, appealing to American President Donald Trump to "win the AI war".{{cite news |last=Blum |first=Sam |title=Scale AI CEO Alexandr Wang Writes Letter to President Trump: ‘America Must Win the AI War’ |url=https://www.inc.com/sam-blum/scale-ai-ceo-alexandr-wang-writes-letter-to-president-trump-america-must-win-the-ai-war/91109901 |work=Inc Magazine |date=21 January 2025}} Later in the month, Scale AI and the Center for AI Safety partnered to release Humanity's Last Exam, a benchmark test for AI systems.{{cite news |last=Tremayne-Pengelly |first=Alexandra |title=Scale AI’s 28-Year-Old Billionaire CEO Warns About This Scarily Good Chinese Startup |url=https://observer.com/2025/01/chinas-ai-capabilities-catching-up-us-scale-ai-alexandr-wang/ |work=Observer |date=25 January 2025}} The company has also assisted in the development of the benchmarks EnigmaEval, MultiChallenge, and MASK.{{cite news |last=Knight |first=Will |title=This Tool Probes Frontier AI Models for Lapses in Intelligence |url=https://www.wired.com/story/this-tool-probes-frontier-ai-models-for-lapses-in-intelligence/ |work=Wired |date=2 April 2025}}
In February 2025, Scale AI agreed to a five-year partnership with the Qatari government to improve government services via AI-based tools and training, including predictive analytics, automation, and advanced data analytics.{{cite news |last=Mills |first=Andrew |title=Qatar signs deal with Scale AI to use AI to boost government services |url=https://www.reuters.com/technology/qatar-signs-deal-with-scale-ai-use-ai-boost-government-services-2025-02-23/ |work=Reuters |date=24 February 2025}} The deal was signed at the Web Qatar 2025 Summit by Mohammed bin Ali bin Mohammed Al Mannai, the Qatari Minister of Communications and Information Technology.{{cite news |last=Noureldin |first=Ola |title=Qatar Partners With Scale AI To Enhance Government Services With AI-Powered Tools |url=https://www.forbesmiddleeast.com/innovation/artificial-intelligence-machine-learning/qatar-partners-with-scale-ai-to-enhance-government-services-with-ai-technology |work=Forbes Middle East |date=23 February 2025}} Also in February, the company became a third-party evaluator of AI models for the U.S. AI Safety Institute.{{cite news |last=Alder |first=Madison |title=US AI Safety Institute taps Scale AI for model evaluation |url=https://fedscoop.com/us-ai-safety-institute-taps-scale-ai-for-model-evaluation/ |work=FedScoop |date=10 February 2025}}
In March 2025, Scale AI reached a deal with the United States Department of Defense to develop the Thunderforge project. The project aims to use AI to “plan and help execute movements of ships, planes, and other assets”, with the goal of speeding up military decisions in both peace and wartime. The contract was awarded to Scale AI and other companies (such as Anduril Industries and Microsoft) by the Defense Innovation Unit, and is intended to first be used with the USINDOPACOM and EUCOM.{{cite news |last=De Vynck |first=Gerrit |title=Pentagon signs AI deal to help commanders plan military maneuvers |url=https://www.washingtonpost.com/technology/2025/03/05/pentagon-ai-military-scale/ |work=The Washington Post |date=5 March 2025}}
In April 2025, Scale AI released Scale Evaluation, a platform used to test large language models against benchmarks to pinpoint weaknesses and flag where additional training data would improve the model.
Remotasks
In 2017, Scale AI established Remotasks, a crowdworking platform to support the creation of labeled data for machine learning, particularly in areas such as computer vision and autonomous vehicles.{{cite news |last=Meaker |first=Morgan |title=The Skilled Workers Training AI to Take Their Jobs |url=https://www.wired.com/story/remotasks-ai-expert-data-labor/ |work=Wired |date=20 February 2024}} The subsidiary has facilities in Southeast Asia and Africa.{{Cite news |last=Tan |first=Rebecca |date=August 28, 2023 |title=Behind the AI boom, an army of overseas workers in 'digital sweatshops' |url=https://www.washingtonpost.com/world/2023/08/28/scale-ai-remotasks-philippines-artificial-intelligence/ |newspaper=The Washington Post |access-date=April 19, 2024 |archive-date=May 24, 2024 |archive-url=https://web.archive.org/web/20240524190250/https://www.washingtonpost.com/world/2023/08/28/scale-ai-remotasks-philippines-artificial-intelligence/ |url-status=live }}
In 2019, Scale AI set up a company called Smart Ecosystem Philippines to operate Remotasks within the country. In the Philippines, many of Remotasks' hires are freelance contractors not covered under labor laws. The pay for some annotation tasks dropped to less than one cent due to "vicious competition" after Remotask expanded to India as well as Venezuela. Late payments are reportedly "commonplace", and some workers received only a few percent of their promised compensation. In 2022, a University of Oxford study said Remotasks met the "minimum standards of fair work" in only two out of ten criteria.
Remotasks has been criticized for obscuring its affiliation with Scale AI, opaque communications, and abrupt changes in worker access in some regions. In early 2024, the platform terminated operations in several countries, including Kenya, Nigeria, and Pakistan, citing administrative and operational considerations.{{Cite web |last=Branndom |first=Russell |date=March 28, 2024 |title=Scale AI's Remotasks platform is dropping whole countries without explanation |url=https://restofworld.org/2024/scale-ai-remotasks-banned-workers/ |access-date=April 19, 2024 |website=Rest of World |language=en-US}}
Outlier
Outlier is a separate contributor platform operated by Scale AI, designed for generative AI data work, particularly in the development and fine-tuning of large language models (LLMs).{{cite news |last=Nieva |first=Richard |title=A Growing Side Hustle For American College Grads: Fixing AI’s Wrong Answers |url=https://www.forbes.com/sites/richardnieva/2025/03/06/scale-ai-outlier-us/ |work=Forbes |date=6 March 2025}}
References
{{Reflist}}
External links
- {{Official website}}
- [https://www.remotasks.com/ www.remotasks.com] (Remotasks Website)
{{Generative AI}}
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