Scale AI has recently initiated legal action against former employee Eugene Ling and his current employer, Mercor, accusing Ling of stealing over 100 confidential documents, encompassing sensitive information like client strategies, prior to his departure. It is claimed that Ling attempted to leverage this information to solicit Scale AI's key client, referred to as "Client A". Additionally, Scale AI has accused Mercor of infringing on its trade secrets. Mercor, however, has categorically denied using any confidential data and stated that it is conducting an investigation to ascertain whether Ling still possesses these documents.

Mercor indicated that it had proactively offered a resolution but had not yet received a response from Scale AI. Eugene Ling expressed regret over the situation on social media and declared his willingness to cooperate. This case underscores Scale AI's profound concern regarding the competitive threat posed by Mercor.