Scale AI Seeks Valuation of Up to $25 Billion in Tender Offer

Artificial intelligence startup Scale AI is reportedly pursuing a valuation as high as $25 billion through a potential tender offer. This move aims to capitalize on the increasing demand for AI-related technologies.

Background and Previous Valuation

Scale AI, founded in 2016, was last valued at approximately $13.8 billion during a Series F funding round led by Accel. The company provides accurately labeled data essential for training AI models.

Tender Offer Details

A tender offer allows investors or the company to purchase shares from existing shareholders, offering liquidity to employees and early investors. The terms are still under negotiation, and the final valuation may change.

Key Clients and Government Contracts

Scale AI serves major clients, including OpenAI, Microsoft, and Meta. The company recently secured a significant contract with the U.S. Department of Defense to enhance AI-driven decision-making for military operations.

Labor Investigation

The U.S. Department of Labor is currently investigating Scale AI for potential violations of the Fair Labor Standards Act. The inquiry focuses on issues such as unpaid wages, worker misclassification, and retaliation against employees.

“Scale AI Seeks Valuation of Up to $25 Billion in Tender Offer”