Labor Dept Clears Scale AI After Wage Probe

AI Startup Escapes Regulatory Snag

Scale AI, a leading provider of data-labeling services for artificial intelligence training, has emerged unscathed from a wage investigation by the U.S. Department of Labor. The probe focused on whether the company had misclassified workers under federal labor laws, particularly concerns about contractor versus employee status. This has been a hot-button issue across the tech and gig economy sectors. After six months of investigation, the department concluded there were no violations in Scale AI’s compensation practices and officially closed the case. The outcome removes a potential regulatory cloud over one of Silicon Valley’s fastest-growing AI infrastructure startups, whose customers include OpenAI and Meta.

A Win Amid Greater Labor Scrutiny

The resolution arrives at a time when the broader tech industry—and particularly firms in the AI and gig sectors—are facing mounting questions over labor classification, wages, and worker protections. While Scale AI has not publicly detailed its worker model, many of its data tasks are outsourced to a vast network of contributors. The closure of this case doesn’t entirely lift the curtain on the company’s labor dynamics, but it does indicate that, at least in this round of oversight, federal regulators found no fault. It also sets a notable precedent for other AI firms navigating similar compliance gray zones.