Non-profit organization showered with public funds pays salaries of more than $300,000

The Scale AI innovation cluster, which is showered with hundreds of millions of dollars in public funds, refuses to transparently disclose the salaries of its 16 employees, who earn an average of $208,000, including four who earn more than $300,000.

“Out of respect for privacy, we cannot communicate personal information about our employees,” retorts Scale AI, a heavily subsidized non-profit organization (NPO) that distributes money to companies to help them with their artificial intelligence (AI) projects.

Last year, Scale AI’s salaries and benefits totaled $3.3 million for 16 employees, which corresponds to an average compensation of $208,000. The annual report mentions, in a footnote, that “the compensation of four employees exceeded $300,000.”

In comparison, Prime Minister François Legault’s salary is $270,120.

Volunteer Administrators

Scale AI’s board of directors (CA) is co-chaired by Hélène Desmarais, wife of Power Corporation’s number 1, Paul Desmarais (son), and its CEO is Julien Billot, former CEO of Groupe Pages Jaunes. Directors are not paid.

M^me Desmarais is also co-founder and executive chair of IVADO Labs, another AI organization that has received nearly $90 million in public funding in recent years.

“Our management fees represent 6.6% of the amounts administered for the financial year ending March 31, 2024, which is below the maximum threshold of 15% authorized,” Scale AI defended itself when questioned by The newspaper.

Scale AI highlights that 16 employees have distributed $130 million across 34 projects in 2023-2024.

Financial performance

Early June, The newspaper filed a request for access to information with the Ministry of Economy, Innovation and Energy (MEIE) to obtain “documents detailing the assessment of Scale AI’s financial performance, with indicators, over the last three years, as well as the total breakdown of its employees’ remuneration.”

In its response, the MEIE merely forwarded annual reports that were already public and refused to provide other documents because they contain “information that has an impact on the economy and on administrative decisions or contains personal information of a confidential nature”.

At Scale AI, it is specified that of the 285 million dollars of subsidies allocated so far, some 170 million dollars went to projects which generated spinoffs of 450 million dollars in the private sector (120 industrial projects).

“For every dollar invested by the government through Scale AI, the industry invests $1.65,” the cluster maintains.

Frozen fries

Last year, The newspaper reported that Scale AI had awarded $8.5 million in aid to Ontario frozen french fry giant McCain to “minimize spoiled potatoes from producers.”

Five years ago, the then minister responsible for the French language, Simon Jolin-Barrette, found that Scale AI had shown a lack of respect towards Quebecers by launching its new program in English in Montreal.