Scale AI is suing a former employee and rival Mercor, alleging they tried to steal its biggest customers

Scale AI, which helps technology companies prepare data to train her artificial intelligence models, has a lawsuit against a former sales staff and its competing MERCOR on Wednesday. The lawsuit claims that the employee, who was appointed by MERCOR, “stole more than 100 secret documents related to the strategies of Scale and other special information,” according to a version seen by Techcrunch.
The Mercor scale is sued due to the embezzlement of commercial secrets and the former employee, Eugene Ling, to violate the contract. The lawsuit also claims that the employee was trying to put Mercor to one of the largest Scale customers before he officially left his previous job. The lawsuit calls for the “client a”
The founder of Mercor Surya Midha denies that his company has used any domain data, although he admits that Ling may have been in the possession of some.
“Although Mercor has rented many people who left the domain, we are not interested in any trade secrets in Scale, and in fact they run our business in a different way. Eugene informed us that he had old documents in the Google Personal Engine, we have not been verified now,”
“We continued to strive six days before an offer to destroy files or access a different solution, and we are now waiting for their response,” said Midaha.
The domain claims that these documents contain the specific data that would allow MERCOR to customer service A, as well as many of the most important Scale customers.
Scale wanted to give it MERCOR a full list of files in the drive, and to prevent Ling from working with the customer A. He claims the lawsuit that MERCOR rejected. Ling immediately did not respond to Techcrunch request for comment, but later wrote on X: “I only heard that I filed a suit on the scale. Last month, I left the size in Mercor. I know this was frustrating to my old team, and I feel bad about it.”
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“When I continued the scale about some of the files I own in the personal drive, I asked whether I could only delete it. But the scale asked not to do anything with them, so I am still waiting for instructions on how to solve this. I never used any of them in this role. This seems to be really regretted until that is my scale.
There is little evidence in the lawsuit about the identity of the customer a. The lawsuit says that if the competitor of Saim won this customer away, it will be a contract “worth millions of dollars to Mercor.”
Whatever the details of this lawsuit, it shows one thing: the range is clearly enough to threaten Mercor to follow the legal procedures. As mentioned previously, even with billions of dollars in Meta investments, TBD LABS- The basic unit within Meta in charge of building artificial intelligence-MERCOR and other LLM data training service providers.
MERCOR is rising in the LLM training field because it is known for employing specialists in content, often, to train LLM data in their experiences.
In June, Scale announced that Meta was investing $ 14.3 billion for a 49 % stake in Scale and was employing its founder. Shortly, it is said that many of the largest data customers are artificial intelligence, who are competitors of Meta efforts, have cut ties with it.
It was updated with social media comments from Eugene Ling.
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2025-09-03 21:21:00