ByIain Martin,

Forbes Staff.

Mercor’s cofounders last month became billionaires after raising $350 million on a $10 billion for the AI training startup. Just over a week later they allegedly canned an AI project that involved thousands of contractors. Hours later it offered to rehire workers on a lower hourly rate, according to several people impacted.

Contractors who worked with startup Mercor say they found themselves locked out of Slack on Tuesday after the AI training project they worked on was abruptly scrapped.

The San Francisco startup, which was valued at $10 billion last month, allegedly emailed contractors on Wednesday to inform them that the project code named Musen had been cancelled.