Clearview AI CEO Resigns Amid Controversy

# Startups

The CEO of Clearview AI, the controversial facial recognition company that built a searchable database with 30 billion photos scraped from the internet, has stepped down. Hoan Ton-That announced his resignation in a statement to TechCrunch, saying, "it is time for the next chapter in my life," and that he'll stick around as a board member. When pressed for more details on why he's leaving, Ton-That kept it zipped. Forbes broke the news first, and now Clearview AI has appointed two "co-CEOs": early investor Hal Lambert and co-founder Richard Schwartz. They're keen to seize new "opportunities" during the Trump administration, according to a statement sent to TechCrunch. Both Lambert and Schwartz have deep roots in Republican politics. Lambert's investment firm, Point Bridge Capital, made waves with the MAGA ETF back in 2017, which throws money at companies that back Republican candidates. Schwartz, on the other hand, was a senior advisor to Rudy Giuliani during his time as New York City's mayor. Clearview AI sells access to its facial recognition database to law enforcement and federal agencies, helping them identify suspects or locate missing folks. But since the startup grabbed those photos without asking, it's been hit with a bunch of privacy lawsuits and fines. As of September 2024, Clearview AI has racked up over $100 million in GDPR fines from data protection agencies in the Netherlands, France, and other places. They've been pretty stubborn about it, refusing to cough up the cash. When TechCrunch asked if they've paid any fines yet, Clearview AI didn't even bother to reply. Clearview AI also got tangled up in a lawsuit with conservative investor and self-proclaimed investigative journalist Charles Johnson. Johnson claimed he was a co-founder and deserved a cut of the commissions, but he recently dropped the suit. However, Clearview AI's counterclaims against Johnson, which include defamation and breach of contract, are still going strong, according to Biometric Update. Ton-That didn't spill the beans on his future plans when TechCrunch asked. He did say that Clearview AI is in its "strongest position ever" financially, boasting the highest growth and revenue in 2024. Yet, the startup has struggled to land big federal contracts and remains in the red, as Forbes pointed out. Clearview AI, backed by investors like Peter Thiel and Naval Ravikant, raised $30 million in a Series B round in 2021, valuing the company at $130 million, according to their website.

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