Archive · 4 Sep 2025
Scale AI Sues Rival Mercor Over Alleged Trade Secret Theft
Scale AI, a company that helps other companies label data for AI, is suing a competing startup called Mercor.
Scale AI claims that Mercor and one of their former employees, Eugene Ling, stole important company secrets.
The secrets were in the form of customer strategy documents and other proprietary data.
The employee allegedly shared these with Mercor.
Scale AI says this was done to steal their customers.
The case is now in court and highlights how competitive the AI industry is, especially the data labeling part.
Mercor says they are investigating the matter, but they deny any wrongdoing.
Scale AI sued Mercor, accusing them of trade secret theft.
The suit alleges a former Scale AI employee, Eugene Ling, stole customer strategy documents.
Ling allegedly contacted a Scale customer on behalf of Mercor.
Mercor says they are investigating the matter.
Meta Platforms Inc. invested $14.3 billion in Scale AI.
- Who
- Scale AI is suing Mercor and Eugene Ling.
- What
- Scale AI alleges trade secret theft.
- When
- The suit was filed on Wednesday.
- Where
- San Francisco federal court.
- Why
- Scale AI believes Mercor and a former employee stole trade secrets to attract new business.
- Plaintiff
- Scale AI Inc.
- Defendant
- Mercor.io Corporation
- Court
- US District Court, Northern District of California (San Francisco)
- Allegation
- Trade secret theft
- Former Employee
- Eugene Ling (Scale's former head of engagement management)
- Investment in Scale AI
- Meta Platforms Inc. finalized a $14.3 billion investment, taking a 49% stake