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The AI Company Zuckerberg Just Poured $14 Billion Into Is Reportedly a Clown Show of Ludicrous Incompetence

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Presumably, when you dump $14 billion into a company to buy a 49 percent stake — as Meta just did in Scale AI — you’re confident that said company a) will help you make a lot of money and b) knows what it’s doing.

But a new scoop from Inc Magazine suggests that Scale AI — co-founded by 28-year-old zillionaire Alexandr Wang, whose first name does indeed lack a letter “e” between the “d” and “r” —  is a massive clown show behind the scenes. 

Back when it worked with Google (the two just broke up following Meta’s takeover), Scale AI reportedly became overrun with countless “spammers” who fleeced the company for bogus work by taking advantage of its laughable security and vetting protocols — an episode that encapsulates its struggles to meet the demands of a huge client like Google.

Scale AI is basically a data annotation hub that does essential grunt work for the AI industry. To train an AI model, you need quality data. And for that data to mean anything, an AI model needs to know what it’s looking at. Annotators manually go in and add that context.

As is the means du jour in corporate America, Scale AI built its business model on an army of egregiously underpaid gig workers, many of them overseas. The conditions have been described as “digital sweatshops,” and many workers have accused Scale AI of wage theft.

It turns out this was not an environment for fostering high-quality work.

According to internal documents obtained by Inc, Scale AI’s “Bulba Experts” program to train Google’s AI systems was supposed to be staffed with authorities across relevant fields. But instead, during a chaotic 11 months between March 2023 and April 2024, its dubious “contributors” inundated the program with “spam,” which was described as “writing gibberish, writing incorrect information, GPT-generated thought processes.”

In many cases, the spammers, who were independent contractors who worked through Scale AI-owned platforms like Remotasks and Outlier, still got paid for submitting complete nonsense, according to former Scale contractors, since it became almost impossible to catch them all. And even if they did get caught, some would come back by simply using a VPN.

“People made so much money,” a former contributor told Inc. “They just hired everybody who could breathe.” 

The work often called for advanced degrees that many contributors didn’t have, the former contributor said. And seemingly, no one was vetting who was coming in.

“There were no background checks whatsoever,” a former queue manager for Remotasks, who was in charge of reviewing and approving the contributors’ work, told Inc. “For example, the clients would have requirements for people working on projects to have certain degrees. But there were no verification checks… Often it was people that weren’t native English speakers.” 

Spammers “could get away with just totally submitting garbage and there weren’t enough people to track them down,” the former queue manager added. They also recalled how Scale AI’s Allocations team in charge of assigning contributors once “dumped 800 spammers” into their team who proceeded to spam “all of the tasks.”

Attempts at cracking down were crude. Per Inc, various memos and guidelines called for either denying or removing contributors from specific countries, including Egypt, Pakistan, Kenya, and Venezuela.

The program also got a little taste of the technology it was helping to create. Spammers were submitting so much AI-generated junk that supervisors were advised to use a tool called ZeroGPT, intended to detects ChatGPT usage, to vet entries.

It makes you wonder just how much gibberish slipped through the cracks and ended up being internalized by Google’s AI models. Perhaps it could explain a little about its infamously shoddy AI Overviews feature.

For its part, a Scale AI spokesperson dismissed the claims.

“This story is filled with so many inaccuracies, it’s hard to keep track,” the spokesperson said in a statement to Inc. “What these documents show, and what we explained to Inc ahead of publishing, is that we had clear safeguards in place to detect and remove spam before anything goes to customers.”

More on AI: WhatsApp Deploys AI, for Those Incapable of Comprehending Straightforward Messages From Their Friends and Family



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UK bosses to be banned from using NDAs to cover up misconduct at work | Employment law

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Bosses in the UK will be banned from using non-disclosure agreements to silence employees who have suffered harassment and discrimination in the workplace as part of the government’s overhaul of workers’ rights.

Ministers will on Monday night table amendments to the government’s employment rights bill to prohibit the widespread practice of using legally enforceable NDAs to conceal unacceptable behaviour at work.

If passed, the rules would mean any future confidentiality clauses in settlement agreements that sought to prevent a worker speaking about an allegation of harassment – including sexual harassment – or discrimination would be null and void.

They would also allow victims to speak freely about their experiences, while any witnesses – including employers – would be able to call out poor conduct and publicly support victims without the threat of being sued.

The changes being introduced to the bill, due to return to the Lords next week, would not affect NDAs for legitimate commercial use, such as commercially sensitive information or intellectual property in business transactions.

But they would create one of the toughest protection regimes in the world, giving millions of workers, including those in low-paid jobs, more confidence that inappropriate behaviour in the workplace would be dealt with.

After years of campaigning by activists, ministers have looked beyond high-profile cases linked to the #MeToo movement to address concerns about workers in regular employment who may not have the means or confidence to pursue their employers through the courts to challenge “gagging orders”.

Announcing the change, Angela Rayner, the deputy prime minister, said: “Victims and witnesses of harassment and discrimination should never be silenced. As the Guardian has reported on widely, this is not an issue confined to high-profile individuals or the most powerful organisations.

“The use of NDAs to cover up abuse and harassment is growing – and sadly amongst those in low-income or insecure employment across multiple industries and workplaces.

“This cannot go on. That is why we are stamping out this practice and taking action to ban any NDAs used for this purpose. My message is clear: no one should suffer in silence and we will back workers and give survivors the voice that they deserve.”

The legislation represents the biggest overhaul of workers’ rights in a generation, introducing day one rights, establishing collective bargaining bodies in vital sectors and strengthening family-friendly entitlements, as well as going further on bereavement leave and tackling “fire-and-rehire”.

Over time NDAs have become the default solution for many organisations, corporations and public bodies to settle cases including sexual misconduct, racism, and pregnancy discrimination.

Their original purpose was to protect intellectual property or other commercial or sensitive information, but reports have shown they have become commonly used to prevent people speaking out about horrific experiences in the workplace.

There have been many high-profile cases of NDAs being used to prevent victims from speaking about crimes, often forcing women and vulnerable individuals to feel stuck in unwanted situations, through fear or desperation.

They have proliferated especially in lower-income, insecure employment including sectors such as retail, hospitality and accommodation, with non-disparagement clauses also typically attached.

A report by the Chartered Institute of Personnel and Development (CIPD) last year found the use of NDAs was relatively common, with 22% of respondents to a survey of 2,000 employers saying their organisation used them when dealing with allegations of sexual harassment.

In contrast, 44% said they did not use NDAs in this way and a further 34% did not know, highlighting that awareness around their use in some organisations may be low.

The CIPD also found that most employers would not strongly object to the removal of NDAs in the workplace. Nearly half (48%) of employers would support a ban, with just 18% opposing, while 20% were ambivalent, and a further 14% did not know.

Zelda Perkins, a former PA to Harvey Weinstein who spearheads the campaign group Can’t Buy My Silence, said of the government’s plans: “This is a huge milestone, for years we’ve heard empty promises from governments whilst victims have continued to be silenced.

“To see this government accept the need for nationwide legal change shows that they have listened and understood the abuse of power taking place.

“Above all though, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.

Zelda Perkins, who worked for Harvey Weinstein as an assistant in the 1990s, called the changes ‘a huge milestone’. Photograph: Antonio Olmos/The Observer

“This is not over yet and we will continue to focus closely on this to ensure the regulations are watertight and no one can be forced into silence again. If what is promised at this stage becomes reality, then the UK will be leading the world in protecting not only workers but the integrity of the law.”

Louise Haigh, a former cabinet minister, said: “Victims of harassment and discrimination have been forced to suffer in silence for too long. Today’s announcement will mean that bad employers can no longer hide behind legal practices that cover up their wrongdoing and prevent victims from getting justice.”

Legislative changes have already been made in Ireland, Canada and the US so that NDAs cannot prohibit disclosure of sexual harassment, discrimination or bullying without it being the expressed wish of the employee.

A landmark survey of sexual harassment at work has found that one in four women have suffered work-related sexual assault.

Britain’s largest trade union, Unite, polled approximately 300,000 female members on whether they had experienced sexual harassment at work, travelling to work or from a colleague in or out of work hours.

Of the 6,615 respondents, 25% said they had been sexually assaulted and 43% had been inappropriately touched. More than 3,000 said they had been the recipient of sexually offensive jokes and/or experienced unwanted flirting, gesturing or sexual remarks.

And 28% had been shared or shown pornographic images by a manager, colleague or third party, while 8% had been a victim of sexual coercion – when a person pressures, tricks, threatens or manipulates someone into engaging in sexual activity without genuine consent – at work.

While the perpetrator in the bulk of these incidents was a member of public in the workplace, such as a patient or a passenger, 3% said they had been sexually assaulted by a manager and 6% by a colleague.



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Trump steps up trade wars with 25% tariffs on Japan and South Korea | Trump tariffs

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Donald Trump unveiled plans to step up his trade wars on Monday, announcing Japan and South Korea will soon face US tariffs of 25% in a significant escalation of his controversial economic strategy.

The US president, who indicated that he would notify as many as as 15 countries of new, higher rates on Monday, posted copies of letters addressed to the leaders of Japan and South Korea on social media. Trump said the rates were set to go into effect 1 August.

The letters were largely identical and informed the leaders that there will be no tariffs if their countries “decide to build or manufacture product within the United States”.

Trump also threatened higher tariffs if the countries place additional tariffs on US exports. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto that 25% we charge,” he wrote.

Trump initially announced a slate of so-called reciprocal tariffs in April, on what the White House dubbed “liberation day”, with some countries facing rates as high as 50%

While he paused those tariffs for 90 days amid market turmoil, this reprieve is due to expire on Wednesday 9 July.

Trump officials initially suggested they would strike dozens of deals with key economies during the pause, but have since indicated that they would use an extension to continue talks.

The treasury secretary, Scott Bessent, said last month the administration was aiming to wrap up negotiations by Labor Day on 1 September.

The US has so far settled deals with three countries: the UK, China and Vietnam, and Bessent said there were over a dozen countries the US is still trying to negotiate with.

The new August deadline for countries without a deal amounts to a further three-week reprieve, but also triggers fresh uncertainty for importers because of the lack of clarity around the tariffs.

As the July deadline has approached, Trump’s officials have been racing to broker deals. Over the weekend, one European diplomat said the US may have to “show muscle if the deal is not good enough”.

The White House also reached an impasse in negotiations with Japan, despite initial optimism. Trump on Friday said it is “much easier to send a letter” and that the offers are “take it or leave it”.

On Wall Street, the benchmark S&P 500 sank by almost 0.9% after Trump posted his first letters.

Though the US stock market has largely recovered from the uncertainty around Trump’s trade war, the US dollar still remains weakened after months of trade fights. At the beginning of this year, the dollar had its worst six months in over 50 years, falling 10.8% since the start of 2025.



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Goods from Japan and South Korea hit with 25% levy

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The US plans to impose a 25% tax on products entering the country from South Korea and Japan on 1 August, President Donald Trump has said.

He announced the tariffs in a post on social media, sharing letters he said had been sent to leaders of the two countries.

The White House has said it expects to send similar messages to dozens of countries in coming days as the 90-day pause it placed on some of its most aggressive tariffs is set to expire.

The first two letters suggest that Trump remains committed to his initial push for tariffs, with little change from the rates announced in April.

At that time, he said he was looking to hit goods from Japan with duties of 24% and charge a 25% on products made in South Korea.

Those tariffs were included in a bigger “Liberation Day” announcement, which imposed tariffs on goods from countries around the world.

After outcry and turmoil on financial markets following the initial tariffs announcement, Trump suspended some of the import taxes to allow for talks. That deadline is set to expire on 9 July.

On Monday, Treasury Secretary Scott Bessent said he expected “a busy couple of days”.

“We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals,” he told US business broadcaster CNBC.



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