Scale AI Sues Former Employee for Alleged Espionage Amid Rivalry with Mercor
Scale AI has filed a lawsuit against Eugene Ling, a former employee, accusing him of stealing over 100 confidential documents containing proprietary information and customer strategies. The company, a key provider of training data for leading AI models, alleges Ling took the materials to his current employer, Mercor—a direct competitor.
The legal action seeks damages, recovery of documents, and an injunction to prevent Mercor from using Scale's trade secrets. "We won't allow anyone to take unlawful shortcuts at the expense of our business," said Scale spokesperson Joe Osborne. The suit follows a turbulent period for Scale, including Meta's multimillion-dollar investment and a 14% workforce reduction.