US Labor Department ends fair pay probe into Scale AI

GlobalData

Mon, May 12, 2025, 3:16 AM 1 min read

The US Department of Labor has concluded its investigation into Scale AI, a startup backed by Nvidia and Amazon, regarding its compliance with the Fair Labor Standards Act (FLSA), reported Reuters citing a source familiar with the situation.

The FLSA sets the framework for minimum wage, overtime pay, and other employment standards within the country.

The inquiry, which commenced nearly one year ago, during the tenure of former President Joe Biden, scrutinised the startup's fair pay practices and working conditions, Scale AI said in March 2025.

In response to the closure, Scale AI said it was "pleased” with the update from DOL, reported TechCrunch.

Scale AI, established in 2016, specialises in providing accurately labelled data crucial for training advanced AI tools like OpenAI's ChatGPT.

The startup also offers a platform for AI research exchange, boasting contributions from more than 9,000 cities and towns globally.

In the previous year, Scale AI secured $1bn in a late-stage funding round led by Accel, with NVIDIA, Amazon, and Meta also participating.

The funding, which elevated the company's valuation to approximately $14bn, is aimed at enhancing data capabilities for enterprise clients, the US Department of Defense, and supporting the DEFCON 31 red-teaming event announced by the White House.

The funding round also saw investments from prominent entities including Coatue, Tiger Global Management, Intel Capital, and AMD Ventures.

This followed a $325m series E funding round in 2021, which at the time reportedly valued Scale AI at around $7.3bn.

"US Labor Department ends fair pay probe into Scale AI" was originally created and published by Verdict, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.