Recently, Hoan Ton-That, the CEO of the controversial facial recognition startup Clearview AI, announced his resignation. After confirming the news, he stated, "It's time to start a new chapter in my life," and will continue to serve as a board member of the company. However, Ton-That did not disclose the specific reasons for his resignation. This news was first reported by Forbes.
Currently, Clearview AI is being led by two "co-CEOs," early investor Hal Lambert and co-founder Richard Schwartz. They expressed their intention to seize new "opportunities" with support from the Trump administration. The two new CEOs have deep ties to Republican politics: Lambert's investment firm, Point Bridge Capital, gained notoriety for launching the MAGA ETF that supports Republican candidates in 2017, while Schwartz previously served as a senior advisor during Mayor Rudy Giuliani's administration in New York City.
Clearview AI's main business involves selling its facial recognition database to law enforcement and federal agencies, which was built by scraping 3 billion photos from the internet. The company faces multiple privacy lawsuits and fines for using these photos without people's consent. As of September 2024, Clearview AI has accumulated over $100 million in GDPR fines before European data protection authorities, but the company has consistently refused to pay these fines. TechCrunch reached out to Clearview AI to inquire whether it has paid any fines, but did not receive a response.
Additionally, Clearview AI was sued by conservative investor Charles Johnson, who claimed to be a co-founder, but he has recently withdrawn the lawsuit. According to Biometric Update, Clearview AI's counterclaim in this case is still ongoing, accusing Johnson of defamation and breach of contract.
Although Ton-That did not elaborate on his future plans after resigning, he stated in his announcement that Clearview AI's current financial condition is "unprecedentedly strong," with growth and revenue reaching historic highs in 2024. However, the company continues to face challenges in securing large federal contracts and has remained in a state of loss.
Investors in Clearview AI include Peter Thiel and Naval Ravikant. In 2021, the company was valued at $130 million during a $30 million Series B funding round.
Key Points:
📈 Clearview AI CEO Hoan Ton-That has resigned but will continue as a board member.
👥 New co-CEOs Hal Lambert and Richard Schwartz will jointly lead the company.
💰 Clearview AI faces over $100 million in GDPR fines and continues to refuse payment.
