Scale AI has filed a lawsuit against former employee Eugene Ling and rival Mercor, accusing them of misappropriating over 100 confidential documents related to customer strategies and proprietary information. The lawsuit claims Ling attempted to pitch Mercor to one of Scale’s major clients, referred to as “Customer A,” prior to his departure. Scale is seeking damages for breach of contract against Ling and trade secret misappropriation against Mercor. Mercor co-founder Surya Midha denies using any of Scale’s data, although he acknowledges Ling may possess some documents. Midha revealed that Mercor offered Scale a resolution involving file destruction, awaiting a response. Ling stated he did not mean to cause any harm, claiming there was no nefarious intent. This legal battle highlights Scale’s apprehensions about Mercor’s innovative approach in the LLM training sector, especially following Meta’s significant investment in Scale, which has spurred changes among Scale’s key customers.
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