Scale AI, a rapid emerging company in the world of AI, is in discussion these days – and this time the reason is not joy, but concern. A few weeks after receiving heavy funding of $ 14 billion (about Rs 1.16 lakh crore) from Meta, Scale AI suddenly trimmed 200 full-time employees and 500 contractual employees. This retrenchment is about 14 percent of the total employees of the company. This news has created a stir in the tech industry, because no one expected that the company would take such a step after such a big funding.
Janei team has the most impact
In Scale AI, this pruning is especially impressing the team that worked on generative AI (JaneaI). The same team helped Google’s Gemini and Elon Musk’s XAI’s Groke Chatbot. Jason Dogi, the interim CEO of Scale AI, announced the employees via an internal email, which was later made public by the business Insider.
Employees were suddenly logged out of the system
The employees who were fired were neither given any prior information nor were given the opportunity to prepare properly. According to reports, some people were logged out of their computer and slack account before waking up in the morning. However, the company has said that the extracted employees will get salary by September 15 and if they follow the terms of the company, they will also be given additional retirement allowance.
Increasing questions despite the meta deal
The sorting has raised many questions, as Meta recently invested heavily in Scale AI and appointed its founder Alexander Wang as the head of the new Superintendent Department of Meta. Not only this, reports show that many top officials of Scale AI, such as vice president and AI researchers, have also left the company.
Clients like Google also retreat
According to a report by Business Insider, Google and other large clients have also retreated from some projects of Scale AI. Also, questions are being raised on the company’s data management. However, the company claims that it is still in a strong financial position and will continue appointments in other departments as well.