A second lawsuit filed by an artificial intelligence company alleging a former employee stole trade secrets has been filed in California, just days after Elon Musk’s xAI alleged it had recently experienced corporate espionage.

In this case, Scale AI, a leading AI data-labeling firm, sued competitor Mercor Inc. in federal court Wednesday, accusing the startup and a former employee of misappropriating trade secrets to win new business.

Scale is valued at approximately $29 billion following a massive $15 billion Meta investment.

The allegations

The lawsuit , filed in the U.S. District Court for the Northern District of California, targets Eugene Ling, Scale’s former head of engagement management, and his new employer, Mercor.

The case is Scale AI Inc. v. Mercor.io Corporation, 25-cv

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