Scale AI experienced major corporate shifts this summer, including a multibillion-dollar investment from Meta, the hiring of CEO Alexandr Wang, and a 14 percent workforce reduction. The company filed a lawsuit against former head of engagement management Eugene Ling and competitor Mercor, alleging Ling stole more than 100 confidential documents containing proprietary information and customer-management strategies. The suit alleges many documents pertained to a key customer, that Ling downloaded many files the day after meeting Mercor's CEO, and that Ling attempted to recruit that customer to Mercor while still employed by Scale.
Now the latest development is a lawsuit over corporate espionage in the AI industry. The AI data labeling company, which has provided training data to fuel many of the industry's leading AI models, filed a lawsuit Wednesday against a former employee, Eugene Ling, and his current employer, Mercor, which is one of Scale's key competitors. Scale alleged that Ling, who was its head of engagement management, stole more than 100 confidential documents that contained proprietary information and company strategies for managing customers.
Scale alleged that Ling, who was its head of engagement management, stole more than 100 confidential documents that contained proprietary information and company strategies for managing customers. The company also alleged that a significant number of the documents related to one of Scale's important customers and that Ling downloaded many of them the day after he met with Mercor's CEO. It also alleged that Ling tried to recruit the customer to join Mercor while he was still at Scale.
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