Scale AI is suing a former employee and rival Mercor, alleging they tried to steal its biggest customers  

Scale AI, a leading AI data labeling company, has filed a lawsuit against a former employee and rival company Mercor. The lawsuit alleges that the former employee, who now works for Mercor, attempted to steal Scale's largest customers. According to the lawsuit, the former Scale employee had access to confidential information, including customer contracts and pricing details. This information was allegedly used to lure away Scale's biggest clients to Mercor, a competing AI data labeling company. The lawsuit highlights the intense competition in the AI data labeling industry, where companies vie for lucrative contracts with major tech firms. Scale's decision to take legal action suggests it views Mercor as a significant threat and is willing to protect its market position aggressively. The outcome of the lawsuit could have broader implications for the industry, as it may set precedents around the use of confidential information and the limitations on employees moving between competing firms.