Clearview AI, a facial recognition startup known for its controversial database of 30 billion photos, is undergoing significant changes in leadership and facing ongoing legal challenges. Hoan Ton-That, the CEO of Clearview AI, has resigned but will remain a board member. Upon his departure, Ton-That expressed his intention to pursue new ventures, stating, “it is time for the next chapter in my life.” The company has appointed Hal Lambert and co-founder Richard Schwartz as co-CEOs to lead the startup through current and emerging opportunities.
Founded on the premise of creating a comprehensive facial recognition database by scraping images from the internet, Clearview AI has faced scrutiny and financial penalties. As of September 2024, the startup has accumulated over $100 million in fines from European data protection agencies in countries like the Netherlands and France for violations of the General Data Protection Regulation (GDPR). Despite these challenges, Clearview AI reported its highest growth and revenue this year, indicating a paradoxical trajectory of success amid controversy.
Clearview AI has struggled to secure substantial federal contracts, which has significantly impacted its profitability. According to a report by Forbes, the startup remains unprofitable despite past investments. In 2021, Clearview AI raised $30 million in a Series B funding round, valuing the company at $130 million. Prominent investors include Peter Thiel and Naval Ravikant.
The company's leadership transition comes as Lambert and Schwartz aim to leverage potential "opportunities" with the Trump administration. Lambert's investment firm, Point Bridge Capital, gained notoriety for launching the MAGA ETF in 2017, focusing on corporations that support Republican candidates. Schwartz brings political experience from his role as a senior advisor to Rudy Giuliani during his tenure as mayor of New York City.
Clearview AI offers its facial recognition services to law enforcement and federal agencies, aiding them in identifying suspects and locating missing individuals. However, the company remains embroiled in legal battles. It faced a lawsuit from Charles Johnson, a conservative investor who claimed to be a co-founder entitled to commissions. Though Johnson recently dropped the suit, Clearview AI's counterclaims alleging defamation and breach of contract are still pending.
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