In an attempt to take advantage of the rapidly increasing demand for the technology, artificial intelligence startup Scale AI is looking for a valuation of up to $25 billion in a possible tender offer, according to a report published by Business Insider on Friday that cited many sources.
Leading tech firms are rushing to incorporate AI into their goods and services. In the private capital sector, startups that address the growing demand for AI chips and machine learning have shown promise.
The ultimate valuation may alter, according to the article, and the terms of California-based Scale AI’s tender offer, in which investors and/or the company purchase shares from current owners, are being reviewed.
The business did not immediately reply to request for comment on the report, despite being valued at around $14 billion in a funding round last year.
The IT behemoths Nvidia, Amazon, and Meta support Scale AI, which was founded in 2016.Large volumes of precisely labeled data are made available by the company, which is essential for training complex tools like ChatGPT from OpenAI.
The Fair Labor Standards Act compliance of Scale AI is being looked into by the U.S. Department of Labor.
