Scale AI, a rapidly growing artificial intelligence startup, is seeking a valuation as high as $25 billion in a potential tender offer, according to a report from Business Insider. The company, which has seen rising demand for AI services, aims to leverage the current AI boom, which has attracted significant attention from major tech players.
The startup, based in California, is in discussions regarding the terms of the tender offer, which could involve investors or the company purchasing shares from existing shareholders. However, the final valuation may change depending on negotiations.
Founded in 2016, Scale AI is already valued at nearly $14 billion, as per its last funding round. The company counts tech giants such as Nvidia, Amazon, and Meta among its backers. Scale AI specializes in providing high-quality, accurately labeled data essential for training machine learning models, including advanced tools like OpenAI’s ChatGPT.
Despite its success, the company is currently under investigation by the U.S. Department of Labor regarding compliance with the Fair Labor Standards Act, adding a layer of regulatory scrutiny.
