Scale AI, an artificial intelligence startup, is seeking a valuation as high as $25 billion in a potential tender offer. This move comes as the company looks to capitalize on the booming demand for AI technology.
The startup, which was valued at nearly $14 billion in a funding round last year, provides vast amounts of accurately labeled data, crucial for training sophisticated AI tools like OpenAI's ChatGPT. Scale AI is backed by tech giants Nvidia, Amazon, and Meta, and has been a bright spot in the private funding market.
The terms of the tender offer, where investors and/or the company buy shares from existing shareholders, are still being discussed, and the final valuation could change. Scale AI has not commented on the report, and the US Department of Labor is currently investigating the company for its compliance with the Fair Labor Standards Act.
