Why US government is probing this NVIDIA, Amazon-backed start-up
What's the story
The US Department of Labor has launched an investigation into Scale AI, a start-up backed by NVIDIA, Amazon, and Meta. The probe, which started nearly a year ago during the Biden administration's time, mainly focuses on the company's compliance with fair labor laws. It specifically looks into matters of equitable pay and working conditions within the company.
Company stance
Response to labor department investigation
Founded in 2016, Scale AI focuses on delivering massive amounts of accurately labeled data, which is critical for training sophisticated tools like OpenAI's ChatGPT. The company has said that it has been working with the Labor Department over the last year to explain its business model and the dynamics of the rapidly growing artificial intelligence (AI) sector.
Information sharing
Platform for AI-related information exchange
Scale AI provides a platform for researchers to share AI-related information, with participants from over 9,000 cities and towns. A representative from the company said that "the feedback we get from contributors is overwhelmingly positive," and assured that "we have dedicated teams to ensure people are paid fairly and feel supported," Reuters reports.
Payment practices
Commitment to timely payments
Scale AI has reiterated its commitment to timely payments, noting that almost all contributor payments are processed on time. The company also disclosed that it addresses 90% of payment-related queries within three days. This commitment highlights the company's focus on being transparent and efficient in its financial transactions with contributors.