A report by Business Insider indicates that Scale AI, an artificial intelligence startup, is aiming for a valuation of up to $25 billion in a potential tender offer, taking advantage of the increasing demand for AI technology. Major tech firms are in a race to integrate AI into their offerings, with startups focusing on AI chips and machine learning seeing strong interest from private investors.

The specifics of Scale AI's tender offer, a process involving the purchase of shares from existing shareholders, are under negotiation and the final valuation is subject to change. Scale AI, headquartered in California and valued at about $14 billion in its previous funding round, has not yet commented on the report.

Established in 2016 and supported by industry leaders like Nvidia, Amazon, and Meta, Scale AI supplies large quantities of accurately labeled data, crucial for training advanced technologies such as OpenAI's ChatGPT. The U.S. Department of Labor is currently investigating Scale AI for its adherence to the Fair Labor Standards Act.

The information cited is attributed to Juby Babu in Mexico City, as per Reuters.