Scale AI: Your simple guide to the hot AI company
Have you heard that artificial intelligence (AI) is going to change our world? One company that is driving this change is Scale AI. Let’s explore everything about this exciting company in simple terms!
What exactly is Scale AI?
Scale AI is a private technology company founded in 2016 by a young genius named Alexandr Wang (he was just 19!). It helps other companies develop smarter AI systems by processing and labeling data. Think of it like a teacher helping students learn by organizing their study materials.
Scale AI’s customers include big names like Microsoft, Nvidia, Toyota and even the US Department of Defense 17. The company is growing rapidly — its revenue rose to 870 million dollars in 2024 and is expected to reach 2 billion dollars in 2025 8!
Can I buy Scale AI shares?
Is Scale AI listed on the stock exchange? → No, it is still a private company. This means you can’t buy its shares on the NASDAQ or NYSE like Apple or Google 16.
Scale AI stock symbol? → There isn’t one yet! Since it’s not public, it doesn’t have a ticker like “AAPL” 613.
How do some people invest? → Authorized investors (people who earn more than 200,000 USD/year or are worth more than 1 million USD) can buy shares through special markets like Hiive. On Hiive, you can find shares at prices between $14 and $16 each 613.
IPO plans? → Not soon! Scale AI is raising a lot of money privately (over 1.5 billion dollars so far!) and has yet to go public 68.
Who are Scale AI’s competitors?
Scale AI is not the only company involved in labeling data. Here are the main competitors 29:
- Labellerr: Ideal for beginners. Uses AI to speed up labeling.
- V7: Great for images and videos. Starts at $150/month.
- Labelbox: Popular with large companies. Customized pricing.
- CVAT: FREE OF CHARGE! Good for technical experts who can handle complex tools.
How much does Scale AI cost?
Scale AI is expensive and works like this: 10:
- Enterprise Plan: For large companies. Includes customized tools and support. Costs $5,000–$400,000+ per year!
- Self-Serve Plan: Pay-as-you-go for smaller projects. Cheaper, but still not “budget-friendly”
- Average price: Most companies pay around $93,000 per year.
What did the Department of Labor investigate?
In 2024, the US government began investigating whether Scale AI pays its data labelers fairly. Many labelers are contractors (not full-time employees), and some have filed lawsuits alleging they were underpaid 11.
Major update (May 2025): The Department of Labor has closed the investigation without penalty! Experts believe the new state rules for contractors helped Scale AI 411.
What do the reviews say about Scale AI?
People who use Scale AI mention 29:
- PROS: Super accurate labeling, works on huge projects, great for government/defense work.
- CONS: Insanely expensive, hard to quit (you lose your labeled data!), not ideal for small teams.
- Rating: 4.3/5 stars on technical review sites.
How does Scale AI make money? (Business model)
Scale AI’s business model consists of 3 main components :
- Data labeling: the AI learns by labeling images/text .
- AI tools: Selling software like Scale Donovan and Defense Llama
- Government contracts: We work with the Pentagon, Air Force, and CIA to develop military AI systems.
This model is working—sales are doubling every year!
When will Scale AI go public? (IPO)
Don’t hold your breath! Scale AI’s CEO says they won’t go public until 2026. Why?
- They raised 900 million dollars privately in May 2024.
- They are growing over 100% per year without going public.
- The stock market has been very choppy for tech companies recently.
The future: What’s next for Scale AI?
Scale AI is focusing on three major areas:
- Government AI: More tools like Defense Llama for soldiers and spies.
- Self-driving cars: Road video labeling for Toyota and GM.
- AI fact-checking: A tool called SEAL that detects AI lies and errors.
Summary
Scale AI is a fast-paced startup that’s making AI smarter behind the scenes. You can’t buy shares in the company yet (unless you’re rich!), but it’s one to keep an eye on. It’s beating its competitors on complex projects, charging top dollar, has survived a labor investigation, and is heading for $2 billion in revenue!
Keep your eyes peeled: if Scale AI goes public, it could become as big as Nvidia or Google in the world of AI!
Links
- Scale AI official website: scale.com
- Hiive Marketplace for accredited investors: hiive.com
- Competitor websites:
- Labellerr: labellerr.com
- V7: v7labs.com
- Labelbox: labelbox.com
- CVAT: cvat.ai
- SuperAnnotate pricing: superannotate.com
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