Scale AI dismisses 700 staff following Meta deal
Scale AI, the startup behind data-labeling for some of the world's biggest chatbots, just laid off over 700 people—about 14% of its team.
The move comes on the heels of Meta pouring $14 billion into the company and bringing founder Alexandr Wang onboard to lead its new Superintelligence division.
Most cuts hit generative AI teams
The layoffs followed a leadership shake-up.
Interim CEO Jason Droege said most cuts hit the generative AI teams working on projects like Google's Gemini and xAI's Grok.
Lay-off news and crunching numbers
Laid-off staff will get severance and pay through mid-September, but many found themselves locked out of their accounts without warning.
The company is also seeing some execs leave and less engagement from major clients like Google.
Scale AI trains popular chatbots
While you might not see their name often, Scale AI quietly helps train popular chatbots, including Google Gemini and xAI Grok.
With these layoffs, there could potentially be ripple effects on how smoothly these bots learn new things in the future.