BI revealed that Scale AI exposed sensitive data about Big Tech clients. Now, the company says it's taking action.
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In today's big story, a report by BI revealed that Scale AI exposed sensitive data about clients like Meta and xAI in public documents. The company has since said it's launching an investigation.
What's on deck
Markets: Why a billionaire investor is predicting a "little bull market" for stocks.
Tech: Amazon's grocery chief didn't mince words when it came to the unit's internal bureaucracy.
Business: Christmas morning might look a little different this year thanks to rising toy prices.
But first, confidential? Not entirely.All you needed was the right URL. With that, anyone could access a number of Scale AI's public Google Docs, some of which were marked "confidential." A few clicks later, private information about the company and thousands of its contractors would have been at your fingertips.
Business Insider revealed this in our reporting. We alerted Scale AI about the security hole two weeks ago, and the company has since launched an investigation and locked down thousands of files that were previously accessible.
Some of those files tracked AI training projects for high-profile customers like Google, xAI, and Meta.
BI saw sensitive details about how Google used ChatGPT to improve its own struggling chatbot, then called Bard.
For Elon Musk's xAI, public documents showed details of "Project Xylophone," an initiative to improve its chatbot's conversations on a wide range of topics, from the zombie apocalypse to life on Mars.
Meta, which is making a $14 billion investment in Scale AI, had confidential training documents exposed with links to audio files with examples of "good" and "bad" speech prompts.
Then there's the contractors. Their names, private email addresses, and details about their work performance were all accessible. BI saw a spreadsheet titled "Good and Bad Folks" that categorized dozens of workers as either "high quality" or suspected of "cheating."
There's no indication that Scale AI had suffered a data breach because of this.
Scale AI has routinely used public Google Docs to track work for high-profile customers, as it's an efficient way to share information with its more than 240,000 contractors. But while "efficiency" has long been the watchword in Big Tech, it shouldn't come at the expense of "security." Cyberdefense experts told BI that Scale AI's practice could have left it vulnerable.
After Scale AI's lockdown following our report, one contractor told BI that many teams' work had ground to a halt due to the new restrictions.
"We are basically chilling out here," the contractor said.
For more on Scale AI, sign up to get the next edition of my colleague Alistair Barr's Tech Memo newsletter in your inbox tomorrow.
1. The tech trade still has room to run. With the tech-heavy Nasdaq hovering near all-time highs, UBS recommends that investors stick with the sector. The bank said AI adoption is still in its early stages and is set to continue growing.
2. Jerome Powell is having doubts about the data. The Fed Chair on Tuesday voiced concerns about the quality of economic data from the Bureau of Labor Statistics — a huge concern since the Fed relies on that data to adjust policy. DOGE cuts may be to blame.
3. Investing advice from a billionaire. Bill Gross is bearish on bonds and bullish on stocks, citing AI as a likely growth factor. He shared his take on how investors should position themselves in an unpredictable market.
1. Amazon's Whole Foods chief slams the unit's internal bureaucracy. In an internal meeting, Jason Buechel recently blamed the unit's red tape for slowing down the business, according to a recording of the meeting exclusively obtained by BI. Amazon is unifying its grocery teams under its "One Grocery" initiative and Buechel identified "overlapping work" as a top priority.
2. Are you coming to my party? RSVP on Partiful. No, wait, it's on Luma. It's on Apple Invites. I mean Shine Parties. Young people are sending invitations for everything from big birthday bashes to move-outs and crash-outs. The age of invitation overload is making it harder to understand what we're attending and what's expected of us.
3. Apple keeps betting on big-budget movies, but the math doesn't add up. The Brad Pitt-led racing movie "F1" is Apple's newest theatrical release. But the company's movie-making arm seems like a big money pit, and it's not clear what Apple's getting out of it, BI's Peter Kafka writes.
1. Sorry, kids. No more cheap toys. Toy prices increased by 2.2% between April and May, according to federal statistics. That's thanks to President Donald Trump's tariffs, since most toys are made in China. As a parent, BI's Katie Notopoulos has mixed feelings.
2. The billionaires who bet big on the NYC mayoral primary — and lost. Zohran Mamdani is projected to win the Democratic nomination for mayor, edging out frontrunner Andrew Cuomo. See the billionaires who together spent millions on anti-Mamdani messaging, including Michael Bloomberg, Bill Ackman, and Ken Griffin.
3. Amazon is coming for Walmart's rural dominance. Amazon recently announced it's adding 4,000 "smaller" communities to its same-day and next-day delivery service. The move takes direct aim at Walmart, which can deliver from its more than 4,600 stores that are located within 10 miles of 90% of the US population.
The finance industry's newest social media sensation roasts private equity bros — and they love it.
Uber made a big change to how it prices trips. It might be the real secret to the company's turnaround.
The internet is loving Wall Street's crash-out over 'Zaddy Zohran'.
A judge just handed Meta a big AI copyright victory. He said lawyers for the other side fumbled the case.
Diddy prosecutors drop Kid Cudi-related arson and kidnapping from their racketeering case.
Why a billionaire investor thinks bitcoin's total value could more than double to $5 trillion.
Notice a red sticker on a Dollar Tree item? It means the price is going up.
Here's the latest stat showing how the US housing market has frozen over in 2025.
Don't expect Jeff Bezos and Lauren Sánchez to get traditional wedding gifts.
Bureau of Economic Analysis publishes final GDP data for Q1.
Nike and Walgreens Boots Alliance report earnings.
Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Hallam Bullock, senior editor, in London. Meghan Morris, bureau chief, in Singapore. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Akin Oyedele, deputy editor, in New York. Ella Hopkins, associate editor, in London.
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Senate holds marathon vote series on Trump's "big, beautiful bill" as GOP eyes July 4 deadline
Washington — A marathon vote series is underway in the Senate after the chamber debated President Trump's massive tax bill into the wee hours of the morning as Republicans work to pass the centerpiece legislation of Mr. Trump's second-term agenda. The House narrowly passed the bill last month, and Senate Republicans have been working to put their mark on the legislation, treading carefully so as not to throw off the delicate balance in the lower chamber. The House will need to approve the Senate's changes to the bill before it can head to the president's desk for his signature. And lawmakers are trying to move quickly, with a self-imposed July 4 deadline to get the measure signed. The Senate worked through the weekend as the GOP nears a final sprint on the legislation ahead of the deadline. Titled "One Big, Beautiful Bill," the legislation includes increased spending for border security, defense and energy production, which is offset in part by cuts to healthcare and nutrition programs. The Congressional Budget Office estimated Sunday that the legislation would increase the deficit by nearly $3.3 trillion over the next decade. Senate Republicans advanced the legislation late Saturday, with all but two voting in favor following hours of delay as the GOP worked to iron out last-minute details and dispel concern among holdouts. The vote on the motion to proceed stayed open for more than three hours as holdouts sought assurances from GOP leaders. Some tweaks were made to the bill before Republicans ultimately received enough votes to move forward. Senate Majority Leader John Thune (R-SD) walks in Capitol Hill, as Republican lawmakers struggle to pass President Donald Trump's sweeping spending and tax bill, in Washington, D.C., June 30, 2025. Elizabeth Frantz / REUTERS Senate Democrats further delayed the legislation's path forward by forcing the bill to be read in its entirety, starting late Saturday. After nearly 16 hours, the Senate clerks concluded their reading of the bill on the floor, starting the clock on debate. Each side then had up to 10 hours for debate. The "vote-a-rama" Following debate, and a break until the morning, the Senate began what's known as a "vote-a-rama" Monday in which senators may offer an unlimited number of amendments and force the chamber to cast vote after vote. Democrats have been using the opportunity to put their GOP colleagues on the record on a number of controversial issues ahead of the midterm elections. But before the chamber could get to the amendment votes, senators had to address an outstanding disagreement over the current policy baseline, an accounting approach that would make it appear that extending the current tax policy would cost nothing. Senate Majority Leader John Thune maneuvered Sunday to allow the use of the current policy baseline, before Senate Minority Leader Chuck Schumer quickly appealed the move, requesting a vote as Democrats railed against it as the "nuclear option." The chamber voted 53-47, along party lines, to affirm the use of the current policy baseline on Monday. Schumer said that Democrats would bring "one amendment after the other" Monday, and began the process by offering an amendment to send the bill back to the Finance Committee to revisit some of its health care provisions. The chamber voted down the amendment in a party-line vote. Democrats proposed a number of amendments to attempt to roll back some of the bill's more controversial provisions. Sen. Ed Markey, a Massachusetts Democrat, proposed an amendment to remove the bill's provisions that he said would force rural hospitals to limit their services or close their doors. And Sen. 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WIRED
9 minutes ago
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Senator Blackburn Pulls Support for AI Moratorium in Trump's ‘Big Beautiful Bill' Amid Backlash
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Forbes
18 minutes ago
- Forbes
Equity Prices Rise To Record Levels Even As The Economy Slows
On Friday (June 27th), both the S&P 500 and the Nasdaq closed at record levels. This occurred despite growing evidence of a slowing economy and continued trade angst.1 Meanwhile, the DJIA is still -2.65% away from its 12/4/24 peak (45,014.04) and the small cap Russell 2000 remains off more than -11% from its 11/25/24 high (2,442.03).2 This isn't a surprise to us as the industrial economy and especially small caps always feel an economic slowdown before it becomes mainstream. In addition, the DJIA and Russell 2000 have many fewer tech companies, the sector where the action is. The consolidated reporting charts are for informational purposes only and should not replace the ... More official reporting made available by each index, custodian, market and/or security. The table above shows that all the major indexes had a good week and month. For the year, the S&P 500 is up about 5% (about where is should be halfway through a typical 10% growth year), while the other three major indexes are lagging. The Nasdaq is up less than 1% while the DJIA (industrials) and the Russell 2000 (small cap) are underwater year to date (with the Russell 2000 off more than -5%). So, a mixed bag.1 2 Five of the Magnificent 7 (NVDA, MSFT, AMZN, META and GOOG) enjoyed a prosperous week. AAPL and TSLA were marginally positive. For the year to date, it is really a mixed bag. AAPL and TSLA are down nearly -20%, and GOOG is down more than -6%. Meanwhile META, NVDA and MSFT show substantial gains, while AMZN is just keeping its head above water. Nevertheless, on Friday, NVDA closed at a new record high.3 4 The consolidated reporting charts are for informational purposes only and should not replace the ... More official reporting made available by each index, custodian, market and/or security. The Consumer As the consumer goes, so goes the economy. So, when the consumers' income falls, or inflation rises faster than that income, real consumption growth is negatively impacted. So, it isn't good news to learn that personal earnings (excluding government transfers) fell in May (-0.1%) and have been negative in three of the past four months. Perhaps this is responsible for the -0.1% drop in consumer spending in May which, after including the effects of inflation, amounts to -0.3% in real terms. There was a fall in spending on durable goods of -1.8%, -0.3% for non-durables, and services were essentially flat (-0.03%).5 There are other signs of consumer discomfort. One such sign is the rise in the number of multiple job holders. This occurs when the income from a single job isn't sufficient to maintain that worker's lifestyle. Either live at a lower level or get a second job! The chart shows a steady upward trend in this statistic since the pandemic.6 Bureau of Labor Statistics Other such signs can be seen in the delinquency rates on consumer loans. Delinquencies on mortgages, auto loans and consumer credit are on the rise. The left-hand side of the chart below shows that credit card balances are at record levels as consumers try to maintain their standard of living (Charge it now – worry about paying for it later!). Note the rapid rise in delinquencies (right-hand side of the chart below) in the post-pandemic period. Note that while credit card delinquencies of 90+ days appear to have come down recently, this is most likely due to increased write-offs of such debt by the financial (bank) system.7 8 FRBNY Consumer Credit Panel, Equifax, Bloomberg Finally, a look at the major retailer reports reinforces the aggregate data. Best Buy, for example, recently cut its sales forecast for 2025. Kohl's reported -3.9% sales growth in Q1, and went on to forecast -5% to -7% for 2025 as a whole. Foot Locker reported that sales fell -2.6% from year earlier levels, and Hormel trimmed its earnings outlook.5Housing As always, housing is a good indicator of the economy's economic health. The left-hand side of the chart below shows the slowdown in Existing Home Sales over the past couple of years, and the right-hand side indicates the rapid rise in the months' supply of inventory at current sales rates (now higher than the pandemic peak). This is a sign of growing weakness and inevitably leads to a slowdown in new home construction with spillover effects into the labor market. National Association of Realtors and Bureau of Labor Statistics Note in the New Home Sales chart below the horizontal trend since 2023 and the latest turndown in 2025. U.S. Census Bureau As demand stagnates, so do home prices. As seen from the chart below, the median sales price of new homes has stagnated for the past two years. Final Thoughts Equity markets continued their upward path the week ended June 27th with record highs for the S&P 500 and the Nasdaq. It was a good week and a good month for stocks. But this rising tide has put the P/E ratio significantly above its long-term mean. Investors beware! For 2025, the S&P 500 leads the pack, up nearly 5%, while small-caps also carry a '5' growth number, but with a negative sign.1 2 It was also a positive week for all of the Magnificent 7 (AAPL barely so). Year-to-date, the stock prices of four of the Mag 7 are positive and three are negative, with AAPL and TSLA each down nearly -20%!3 4 As the consumer goes, so does the economy. One can see the stress developing in the consumer sector by looking at the rising trend of multiple job holders and the rise in both credit card balances and 90+ day delinquencies.6 7 8 Housing is always a bellwether of the economy. The fact that Existing Home Sales have tanked and New Home Sales have flatlined tells an astute observer that the economy has entered rocky ground. Robert Barone, Ph.D. (Joshua Barone and Eugene Hoover contributed to this blog.) Robert Barone, Joshua Barone and Eugene Hoover are investment adviser representatives with Savvy Advisors, Inc. ('Savvy Advisors'). Savvy Advisors is an SEC registered investment advisor. Material prepared herein has been created for informational purposes only and should not be considered investment advice or a recommendation. Information was obtained from sources believed to be reliable but was not verified for accuracy. Ancora West Advisors, LLC dba Universal Value Advisors ('UVA') is an investment advisor firm registered with the Securities and Exchange Commission. Savvy Advisors, Inc. ('Savvy Advisors') is also an investment advisor firm registered with the SEC. UVA and Savvy are not affiliated or related. References:1 CNBC, June 29, 20252 Yahoo Finance, June 30, 20253 Business Insider, May 20, 20254 Alpha Spread, March 10, 20255 CNBC, June 27, 20256 Bureau of Labor Statistics, June 9, 20257 Mortgage Bankers Association, May 13, 20258 KPAX/TransUnion, December 12, 2024
