**Scale AI Sues Former Employee, Rival Mercor Over Alleged Client Poaching**
Artificial intelligence giant Scale AI has initiated legal action against a former employee and rival firm Mercor, accusing them of attempting to poach its largest customers.
The lawsuit alleges that the former employee, who left Scale AI for Mercor, engaged in efforts to illicitly divert key clients. Scale AI claims this action constitutes a breach of contract and intellectual property theft, aimed at undermining its market position.
Mercor, a newer player in the AI services sector, has not yet publicly responded to the allegations. The case highlights the intense competition and strategic importance of client relationships within the rapidly expanding AI industry.