Scale AI’s $14B Security Leak and $95/Hour Math Nerds Showdown

Mercor CEO Brendan Foody threw shade harder than a solar eclipse at Scale AI, accusing them of losing focus on product quality despite their whale-sized $14.3 billion Meta cash infusion in June 2025. Apparently, Scale was juggling layoffs of 200 staff and 500 contractors, all after accidentally making confidential AI training docs as accessible as a public Google Doc party invite. Mercor, founded just last year, boasts average contractor pay of $95 an hour — triple Scale’s meager $30–and hunts elite annotators like Math Olympiad champs and Rhodes Scholars instead of your run-of-the-mill starbucks poet. Meanwhile, Scale’s interim CEO Jason Droege admits they drown in 'layers, bureaucracy, and unhelpful confusion,' which sounds like every bad Zoom meeting ever, but still claims data quality is soaring. Spoiler alert: those 'confidential' docs were more like public diaries for billion-dollar AI secrets.

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Source: Businessinsider | Published: 9/16/2025 | Author: Shubhangi Goel