Meta-backed Scale AI sues ex-employee for stealing confidential documents
What's the story
Scale AI, a leading player in the artificial intelligence (AI) data labeling industry, has filed a lawsuit against its former employee Eugene Ling. The company claims that Ling stole over 100 confidential documents containing proprietary information and strategies for managing customers. The lawsuit also names Mercor, one of Scale's main competitors, as a co-defendant.
Espionage claims
Allegations of corporate espionage
The lawsuit alleges that Ling, who was Scale's head of engagement management, stole a large number of documents related to one of the company's key customers. The day after meeting Mercor's CEO, he allegedly downloaded many such documents. While still at Scale, Ling purportedly tried to recruit this important customer for Mercor.
Industry impact
Corporate espionage in the AI industry
Scale's lawsuit comes amid a wave of changes in the AI industry, including mergers and acquisitions, high-profile departures, and lucrative pay packages. These developments have raised concerns over the movement of sensitive information. The case highlights the ongoing corporate espionage issues in the AI sector as companies like OpenAI, Anthropic, Google, Meta and Microsoft continue to compete fiercely with new features and funding.
Legal action
Scale seeks damages and legal costs
As part of its lawsuit, Scale is seeking legal costs and damages from the US District Court for the Northern District of California. The company also wants Mercor to stop using its proprietary information and return Scale's documents. "Scale has become the industry leader on the strength of our ideas, innovation, and execution," Joe Osborne, a spokesperson for Scale AI told The Verge.