Ann: Q2 FY24 Quarterly Activity Report and Appendix 4C, page-125

Scale AI technology has advanced and more advanced than Appen's due to US federal govt contracts that Appen missed out on. Nonetheless AI data is becoming big and important business. Appen is transitioning from doing everything itself to acquiring best in class technology. It works with many start ups such as Reka AI that should help it catch up in technological advancement. They both offer exact same product and services the difference is Scale AI tech is more advanced and hence Scale 53% Gross Margin to Appens 38%. Appen's crowd is still a big drawcard for large amounts of quality data that model builders need to compete. Scale AI due to National security issues in the US are unable to conduct business in China and Appen will never win US federal government contracts. But thats ok - the dopes in Australia will eventually realise that AI data is big and important business thats only just starting now.