Scale AI, which helps tech companies prepare data to train their AI models, filed a lawsuit against one of its former sales employees and its rival Mercor on Wednesday. The suit claims the employee, who was hired by Mercor, “stole more than 100 confidential documents concerning Scale’s customer strategies and other proprietary information,” according to a copy seen by TechCrunch.
Scale is suing Mercor for misappropriation of trade secrets and is suing the former employee, Eugene Ling, for breach of contract. The suit also claims the employee was trying to pitch Mercor to one of Scale’s largest customers before he officially left his former job. The suit calls this company “Customer A.”
Mercor co-founder Surya Midha denies that his company used any data from Scale, although he admits that Ling may have been in possession of some.
“While Mercor has hired many people who departed Scale, we have no interest in any of Scale’s trade secrets and in fact are intentionally running our business in a different way. Eugene informed us that he had old documents in a personal Google Drive, which we have never accessed and are now investigating,” Midha told TechCrunch in an emailed statement.
“We reached out to Scale six days ago offering to have Eugene destroy the files or reach a different resolution, and we are now awaiting their response,” Midha said.
Scale alleges that these documents contained the specific data that would allow Mercor to serve Customer A, as well as several other of Scale’s most important clients.
Scale wanted Mercor to give it a full list of the files in the drive, and to prevent Ling from working with Customer A. It alleges in the suit that Mercor refused. Ling did not immediately respond to TechCrunch’s request for comment, but he later wrote on X: “Just heard I’m getting sued by Scale. Last month, I left Scale to work at Mercor. I know this was frustrating for my old team, and I feel bad about that.”
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Continued Ling, “When Scale reached out about some files I had in my personal drive, I asked if I could just delete them. But Scale asked that I not do anything with them, so I’m still waiting for guidance on how to resolve this. I’ve never used any of them in this role. It sounds like Scale wants to sue me and that’s up to them. But I just wanted to say that there truly was no nefarious intent here. I’m really sorry to my new team at Mercor for having to deal with this.”
There are scant clues in the suit about the identity of Customer A. The suit does say that if Scale’s rival did win this customer away, it would be a contract “worth millions of dollars to Mercor.”
Whatever the details of this suit, it does show one thing: Scale is clearly concerned enough about the threat of Mercor to pursue legal action. As TechCrunch previously reported, even with Meta’s multibillion-dollar investment into Scale, TBD Labs — the core unit within Meta tasked with building AI superintelligence — is still using Mercor and other LLM data training service providers.
Mercor is rising in the LLM training arena because it is known for hiring content specialists, often PhDs, to train LLM data in their areas of expertise.
In June, Scale announced that Meta was investing $14.3 billion for a 49% stake in Scale and was hiring away its founder. Shortly after that, several of Scale AI’s largest data customers, who are competitors to Meta’s efforts, reportedly cut ties with it.
Updated with comments on social media from Eugene Ling.
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![‘Millennium Actress’ Will Always Be My Favorite Satoshi Kon Film
Director Guillermo del Toro once compared watching a movie for the first time to going on a blind date. The first date is flirtatious with promise; the second go-around is the proper date. By the time you rewatch a movie three or four more times, you’ve graduated to marriage. In all my years watching anime for work and leisure, there’s no film I’ve felt married to as much as I do toward Satoshi Kon’s finest film, Millennium Actress. Unlike Kon’s showier film, which pushes animation to the forefront with adult themes by front-loading its opening moments with dreamlike imagery that provokes you into unease and awe-struck wonder, Millennium Actress‘ brand of phantasmal imagery doesn’t flourish in magical realism, horror, or yuletide merriment. Millennium Actress blossoms in the hazy-bright subjectivity and romanticization of memory. Namely, the memory of former showbiz actress Chiyoko Fujiwara (JP: Fumiko Orikasa, Mami Koyama; EN: Abby Trott, Erin Yvette, Cindy Robinson). When a reporter and his cameraman make a pilgrimage to Chiyoko’s home for an interview recounting her career, they wind up traveling through her memories and films. Chiyoko regales her guests, reminiscing about being a child during World War II, the mysterious man she helped flee from police officers, the promise they made to each other, and how his sudden disappearance led her to pursue stardom in cinema. Her hope was that she’d be so successful they’d have no choice but to reunite someday by the sheer gravitational force of her star power—if he’s even still alive. With her storied career behind her, Chiyoko’s life is spent longing forever and a day for a reunion that may never come.
[embed]https://www.youtube.com/watch?v=mWGRmtTUkvg[/embed] While the surface-level intrigue of a journalist interviewing a subject isn’t lost on me, given my vocation, the 2001 film feels like my personal cinematic Amigara fault; what perpetually strikes me about Kon’s film is how it takes its otherwise pleasantly banal story on the page and breathes vibrant life into it through artistry the likes of which the anime industry may never see again. Kon’s blocking and camera work have already been praised to death, and rightfully so, as the stuff film students study to understand scene setting, and Studio Madhouse’s creative efforts with Millennium Actress are no exception. What gets me invigorated about Millennium Actress whenever the film crosses my mind in my day-to-day is how it plays with memory as an active, living tapestry over the static, absolute depictions of it I’ve encountered in other media.
As Chiyoko recounts the chapters of her life—her humble beginnings in film, the trials and tribulations she faced to become a household name for a time—her audience in both viewers and the journalists who’re guests in her home are struck with the poignant sense that her life is one of pyrrhic victories. No matter how big she got, the goalpost was to be big enough that her assumed paramour would find her from her own clout, and they’d reunite in the most saccharine way imaginable; it never manifests as the reward at the end of her hard-earned journey—a journey that rivals the millennia her visage graces immortalized in celluloid. It’s Sisyphean, and the pain of being trapped recounting her trek up to this point feels less like a trip down memory lane and more like a prison behind the guardrails of her all-encompassing dissatisfactions. © Madhouse/GKIDS/HBO Max Then something magical happens. In the way memory isn’t us replaying events exactly as they occurred but reconstructing them from our own fallibly human recountenances, Chiyoko breaks free from the script of her own memory, transforming it into a lucid dream where her agency is superimposed over the roles she played, giving her the power to pursue the man she spent years waiting for. This, in turn, transports both the journalists and audiences into the fabric of the fantastical roles she’s played, referencing a pastiche of real-life cinema, including Akira Kurosawa’s Throne of Blood, Ishirō Honda’s Godzilla, and Stanley Kubrick’s 2001: A Space Odyssey, as Chiyoko flips the script on the very fabric of her life’s narrative to arrive at her truth.
Along that journey, Kon weaves a stirring, imaginative, sobering tale integrating the universal pang of life, life’s regrets, and what we make of what’s left when we approach our final curtain calls, looking back on the journey we faced to get to our final destination. And the answer Chiyoko arrives at as the film bookends itself, as she’s sat in the cockpit of a space rocket set for the stars, is etched in my soul forever. I treasure Millennium Actress so much that I nearly went into orbit myself when I interviewed Lady Snowblood actress Meiko Kaji during a Japan Society retrospective event earlier this year celebrating her 60-year career. It took nearly every fiber of my being to maintain my cool as my prepped questions for our Zoom interview made me realize I was put smack dab in the same scenario as Millennium Actress‘ journalists. Like them, I was interviewing and guffawing at the answers I received, which landed beyond the scope of what I could’ve ever hoped for from an actress whom I had the awesome responsibility to encapsulate a career that doubled my own lifetime. Like Chiyoko, Meiko never intended to be an actress at all. But through stubborn determination woven within the woman behind the character actress, she made a way out of no way. That shit means something to me, man. [embed]https://www.youtube.com/watch?v=wfnRYdTpzbs[/embed] Whether it’s Wong Kar-wai, Studio Ghibli, or the late-great dreamscape auteur, Satoshi Kon, everyone’s got their favorites from an eclectic creative’s body of work. Sometimes those favorites coincide with their indelible effects on both pop culture and their status as poster children for their visual ethos—your In the Mood for Love, Spirited Away, and Perfect Blue.
But my favorites of the bunch tend to be those with middle-child syndrome in their remarkable films. I’m enamored of how Kar-wai reverse-engineered the quantum Zeno effect of doomed romance and yearning in Happy Together; how Studio Ghibli told a timeless tale of environmentalism against industry and love caught in the crossfire in Princess Mononoke. But most of all, I’m moved by Kon’s beautiful tale of an actress reminiscing over her years spent hounding after an unattainable goal not to reach it, but for the thrill of the chase. Millennium Actress is streaming on HBO Max. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Millennium #Actress #Favorite #Satoshi #Kon #FilmAnime,GKids,Madhouse,Millennium Actress,Satoshi Kon ‘Millennium Actress’ Will Always Be My Favorite Satoshi Kon Film
Director Guillermo del Toro once compared watching a movie for the first time to going on a blind date. The first date is flirtatious with promise; the second go-around is the proper date. By the time you rewatch a movie three or four more times, you’ve graduated to marriage. In all my years watching anime for work and leisure, there’s no film I’ve felt married to as much as I do toward Satoshi Kon’s finest film, Millennium Actress. Unlike Kon’s showier film, which pushes animation to the forefront with adult themes by front-loading its opening moments with dreamlike imagery that provokes you into unease and awe-struck wonder, Millennium Actress‘ brand of phantasmal imagery doesn’t flourish in magical realism, horror, or yuletide merriment. Millennium Actress blossoms in the hazy-bright subjectivity and romanticization of memory. Namely, the memory of former showbiz actress Chiyoko Fujiwara (JP: Fumiko Orikasa, Mami Koyama; EN: Abby Trott, Erin Yvette, Cindy Robinson). When a reporter and his cameraman make a pilgrimage to Chiyoko’s home for an interview recounting her career, they wind up traveling through her memories and films. Chiyoko regales her guests, reminiscing about being a child during World War II, the mysterious man she helped flee from police officers, the promise they made to each other, and how his sudden disappearance led her to pursue stardom in cinema. Her hope was that she’d be so successful they’d have no choice but to reunite someday by the sheer gravitational force of her star power—if he’s even still alive. With her storied career behind her, Chiyoko’s life is spent longing forever and a day for a reunion that may never come.
[embed]https://www.youtube.com/watch?v=mWGRmtTUkvg[/embed] While the surface-level intrigue of a journalist interviewing a subject isn’t lost on me, given my vocation, the 2001 film feels like my personal cinematic Amigara fault; what perpetually strikes me about Kon’s film is how it takes its otherwise pleasantly banal story on the page and breathes vibrant life into it through artistry the likes of which the anime industry may never see again. Kon’s blocking and camera work have already been praised to death, and rightfully so, as the stuff film students study to understand scene setting, and Studio Madhouse’s creative efforts with Millennium Actress are no exception. What gets me invigorated about Millennium Actress whenever the film crosses my mind in my day-to-day is how it plays with memory as an active, living tapestry over the static, absolute depictions of it I’ve encountered in other media.
As Chiyoko recounts the chapters of her life—her humble beginnings in film, the trials and tribulations she faced to become a household name for a time—her audience in both viewers and the journalists who’re guests in her home are struck with the poignant sense that her life is one of pyrrhic victories. No matter how big she got, the goalpost was to be big enough that her assumed paramour would find her from her own clout, and they’d reunite in the most saccharine way imaginable; it never manifests as the reward at the end of her hard-earned journey—a journey that rivals the millennia her visage graces immortalized in celluloid. It’s Sisyphean, and the pain of being trapped recounting her trek up to this point feels less like a trip down memory lane and more like a prison behind the guardrails of her all-encompassing dissatisfactions. © Madhouse/GKIDS/HBO Max Then something magical happens. In the way memory isn’t us replaying events exactly as they occurred but reconstructing them from our own fallibly human recountenances, Chiyoko breaks free from the script of her own memory, transforming it into a lucid dream where her agency is superimposed over the roles she played, giving her the power to pursue the man she spent years waiting for. This, in turn, transports both the journalists and audiences into the fabric of the fantastical roles she’s played, referencing a pastiche of real-life cinema, including Akira Kurosawa’s Throne of Blood, Ishirō Honda’s Godzilla, and Stanley Kubrick’s 2001: A Space Odyssey, as Chiyoko flips the script on the very fabric of her life’s narrative to arrive at her truth.
Along that journey, Kon weaves a stirring, imaginative, sobering tale integrating the universal pang of life, life’s regrets, and what we make of what’s left when we approach our final curtain calls, looking back on the journey we faced to get to our final destination. And the answer Chiyoko arrives at as the film bookends itself, as she’s sat in the cockpit of a space rocket set for the stars, is etched in my soul forever. I treasure Millennium Actress so much that I nearly went into orbit myself when I interviewed Lady Snowblood actress Meiko Kaji during a Japan Society retrospective event earlier this year celebrating her 60-year career. It took nearly every fiber of my being to maintain my cool as my prepped questions for our Zoom interview made me realize I was put smack dab in the same scenario as Millennium Actress‘ journalists. Like them, I was interviewing and guffawing at the answers I received, which landed beyond the scope of what I could’ve ever hoped for from an actress whom I had the awesome responsibility to encapsulate a career that doubled my own lifetime. Like Chiyoko, Meiko never intended to be an actress at all. But through stubborn determination woven within the woman behind the character actress, she made a way out of no way. That shit means something to me, man. [embed]https://www.youtube.com/watch?v=wfnRYdTpzbs[/embed] Whether it’s Wong Kar-wai, Studio Ghibli, or the late-great dreamscape auteur, Satoshi Kon, everyone’s got their favorites from an eclectic creative’s body of work. Sometimes those favorites coincide with their indelible effects on both pop culture and their status as poster children for their visual ethos—your In the Mood for Love, Spirited Away, and Perfect Blue.
But my favorites of the bunch tend to be those with middle-child syndrome in their remarkable films. I’m enamored of how Kar-wai reverse-engineered the quantum Zeno effect of doomed romance and yearning in Happy Together; how Studio Ghibli told a timeless tale of environmentalism against industry and love caught in the crossfire in Princess Mononoke. But most of all, I’m moved by Kon’s beautiful tale of an actress reminiscing over her years spent hounding after an unattainable goal not to reach it, but for the thrill of the chase. Millennium Actress is streaming on HBO Max. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Millennium #Actress #Favorite #Satoshi #Kon #FilmAnime,GKids,Madhouse,Millennium Actress,Satoshi Kon](https://gizmodo.com/app/uploads/2026/07/Millennium-Actress.jpg)
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