Scale AI, a prominent AI data labeling and infrastructure company, has seen its valuation decline to $7.3 billion in a recent tender offer, marking a significant drop from its peak valuation of $7.3 billion in 2021. The company, which provides crucial services for training artificial intelligence models, is allowing employees to sell their shares at $18.30 per share through this tender offer. This represents a 20% decrease from the company’s previous share price of $23 during its Series E funding round. Despite the valuation decline, Scale AI continues to play a vital role in the AI ecosystem, providing data annotation services and AI infrastructure to major tech companies and government agencies. The company has expanded its offerings beyond data labeling to include AI model evaluation and deployment tools. The valuation adjustment reflects broader market dynamics and a more conservative approach to tech valuations, particularly in the AI sector. Scale AI’s situation mirrors similar trends across the tech industry where companies are experiencing valuation recalibrations. The tender offer provides liquidity opportunities for employees while indicating the market’s current perspective on AI infrastructure companies. The company maintains strong partnerships with key players in the tech industry and continues to develop new AI-related products and services despite the valuation adjustment.
Source: https://www.businessinsider.com/scaleai-valuation-tender-offer-shares-2025-3