Scale AI Sues Rival Startup Mercor, Alleging Trade Secret Theft
(Bloomberg) -scale Ai Inc. filed a lawsuit against Mercor, the starting data labeling starting Mercor, accusing the company and a former employee of playing trade secrets to attract new business.
The case, which was filed at the San Francisco Federal Court on Wednesday, claims that Scale’s former chairman of Participation Management President Eugene Ling has downloaded more than 100 customer strategy documents and other private documents to a personal Google Drive while communicating with Mercor.
Allegedly, Ling met with Mercor General Manager Brendan Foody while working on a scale, and other Mercor employees discussed Skal’s business strategies and products with Ling.
Mercor co -founder Syria Midha, said the company was investigated.
Midha said in a statement, “Mercor hire many people who leave the scale, we are not interested in any of the commercial secrets of Scale, and in fact, we are carrying out our business in a different way,” he said. “Eugene informed us that he had old documents on a personal Google Drive that we have never reached and now researched. Six days ago, we offered Eugene to destroy the files or reach a different solution, and now we are waiting for their answers.”
The case emphasizes violent competition in a significant portion of the AI industry. Founded in 2016, Scale has been the best known name in the market to help technology firms label and explain the necessary data to create artificial intelligence models. However, in recent months, he faced the increasing pressure from competitors.
“Our scale ideas have become an industrial leader on the power of our execution, Bir said Joe Osborne, a spokesman Joe Osborne. “We will not let anyone get illegal shortcuts at the expense of our job.”
In June, Meta Platform Inc. completed an investment of $ 14.3 billion on a scale by taking 49% shares in the company. According to the reports of Bloomberg News and others, after the agreement with Meta, some of the leading customers of Scale gradually removed work with Openai and Alphabet Inc.’s Google. Bloomberg reported that Openai returned to Mercor to meet his needs for more and more and more specialized data.
The case claims that Mercor hired Ling to expand his relationship with Scale’s big customers, claiming that a significant portion of Ling’s stolen documents belong to that unidentified customer.
According to the case, Ling contacted the customer on behalf of Mercor while working on scale. According to the complaint, Mercor uses Ling in the customer’s account.
CASE SCALE AI INC. / Mercor.io Corporation, 25-CV-07402, USA Regional Court, Northern Region of California (San Francisco).
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