The U.S. Department of Labor has initiated an investigation into Scale AI, a data labeling startup backed by NVIDIA, Amazon, and Meta. The probe focuses on Scale AI's compliance with the Fair Labor Standards Act, as the California-based firm confirmed on Thursday.
This regulatory scrutiny examines Scale AI's fair pay practices and working conditions. The investigation, which was launched under the former President Joe Biden's administration, could result in findings that impact the company's operations and reputation.
While NVIDIA is an investor and not directly under investigation, this development highlights potential risks within its portfolio companies. The outcome of this labor department inquiry will be important for Scale AI and its prominent backers.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.