Scale AI Seeks Valuation of Up to $25 Billion in Potential Tender Offer, Reports Business Insider

Artificial intelligence startup Scale AI is seeking a valuation of up to $25 billion in a potential tender offer to capitalize on the growing demand for AI technology, according to Business Insider.

Top tech companies are racing to integrate AI into their products and services, while startups catering to the increasing demand for AI chips and machine learning have become a focal point in the private funding market.

Terms of Scale AI's tender offer, where investors or the company buy shares from existing shareholders, are still under discussion, and the final valuation may vary.

Founded in 2016, Scale AI is backed by tech giants such as Nvidia, Amazon, and Meta. The company provides large volumes of accurately labeled data, essential for training advanced tools like OpenAI's ChatGPT.

Additionally, the U.S. Department of Labor is reviewing Scale AI for its compliance with the Fair Labor Standards Act.