Scale AI cuts projects and shuts team after Meta stake amid strategic pivot

Following Meta’s $14.3 billion investment earlier this year, Scale AI shuttered its New Projects Organisation (NPO) in Dallas—including over a dozen roles focused on improving chatbot writing capabilities. Severance was offered and role transitions proposed. The move signals a strategic shift from broad R&D to tighter commercialisation of critical AI systems. On top of this, Scale has agreed to settle multiple California worker-classification lawsuits that targeted its contractor model used in labelling data. Analysts say the rounds of restructuring illustrate growing pains for high-flying AI firms.