Clearview AI CEO Resigns Amid Controversy

Clearview AI CEO Steps Down

Hoan Ton-That, the Chief Executive Officer of Clearview AI, has resigned from his position. This information was conveyed in a statement provided to TechCrunch. The company is known for its controversial facial recognition technology and a database containing 30 billion images sourced from internet scraping.

Transition and New Leadership

Ton-That stated that the time has come for him to begin a new phase in his life. He will continue to contribute to the company as a member of the board of directors. When questioned regarding the specific reasons behind his departure, he chose not to provide further details. Forbes initially reported on this leadership change.

New Co-CEOs and Strategic Direction

Clearview AI will now be led by two co-CEOs: Hal Lambert, an early investor, and Richard Schwartz, a co-founder. They aim to leverage emerging “opportunities,” particularly within the context of the previous administration, as outlined in a statement released by Clearview AI to TechCrunch.

Political Background of New Leadership

Both Lambert and Schwartz possess extensive backgrounds in Republican politics. Lambert’s investment firm, Point Bridge Capital, gained prominence for launching the MAGA ETF in 2017. This ETF focuses on investing in companies that support Republican candidates. Schwartz previously served as a senior advisor to Rudy Giuliani during his time as the mayor of New York City.

Facial Recognition Technology and its Applications

Clearview AI provides law enforcement and federal agencies with access to its facial recognition database. This technology is utilized for identifying suspects and locating missing individuals. The company’s practice of acquiring photos without explicit consent has resulted in numerous privacy lawsuits and financial penalties.

Significant GDPR Fines

As of September 2024, Clearview AI has accumulated over $100 million in fines related to the General Data Protection Regulation (GDPR). These fines have been issued by data protection authorities in various European countries, including the Netherlands and France. Historically, Clearview AI has resisted paying these penalties. (A request for comment from TechCrunch regarding payment status went unanswered.)

Legal Disputes

Clearview AI was also involved in a lawsuit initiated by Charles Johnson, a conservative investor and investigative journalist. Johnson claimed he was a co-founder and entitled to a portion of the commissions. He has since withdrawn the suit. However, Clearview AI’s counterclaims against Johnson, alleging defamation and breach of contract, remain active, as reported by Biometric Update.

Financial Status and Future Plans

Ton-That refrained from disclosing his future plans when approached by TechCrunch. He asserted that Clearview AI is currently in its “strongest position ever,” experiencing its highest growth and revenue in 2024. Despite this, the company continues to struggle in securing substantial federal contracts and remains unprofitable, according to Forbes.

Investment and Valuation

Clearview AI’s investors include prominent figures such as Peter Thiel and Naval Ravikant. In 2021, the company secured $30 million in a Series B funding round, which valued it at $130 million, as stated on its official website.