Hoan Ton-That, CEO and co-founder of Clearview AI has officially stepped down from his role. This has brought on speculations about something bubbling below the surface. The news of the resignation comes at a time when Clearview AI continues to face mounting legal challenges and privacy concerns over its operations.
Ton-That announced his resignation in a statement, saying, “It is time for the next chapter in my life.” However, he will remain on the company’s board to ensure continued influence over its direction.
Who’s Taking Over?
With Ton-That stepping aside, the next question is: who rises to power?
Clearview AI has opted for a dual-leadership approach. It has named early investor, Hal Lambert, and co-founder, Richard Schwartz, as its new co-CEOs. According to a company statement, the duo is focused on seizing “new opportunities“ under the Trump administration.
Both Lambert and Schwartz have deep ties to Republican politics:
- Hal Lambert: Founder of investment firm Point Bridge Capital. The firm is best known for launching the MAGA ETF that invests in companies supportive of Republican candidates.
- Richard Schwartz: Former senior advisor to Rudy Giuliani during his tenure as New York City’s mayor.
The Controversy Surrounding Clearview AI
Clearview AI has been at the center of ongoing debates over privacy and ethical concerns due to its vast facial recognition database. The company has amassed over 30 billion images in its operations. It’s the source of the images that have raised several eyebrows. Clearview scraped publicly available photos from social media platforms and websites without user consent.
It then sold access to this database to law enforcement agencies. These agencies use the database to identify individuals, track down suspects, and even locate missing persons. This practice has drawn sharp criticism from privacy advocates, legal experts, and regulatory bodies worldwide.
Clearview’s operations are similar to OpenAI in that regard: both companies heavily rely on publicly available data. But just like Clearview AI, OpenAI has faced multiple lawsuits.
A History of Legal Battles
The company’s methods have led to multiple lawsuits and regulatory penalties, particularly in Europe. Since 2024, Clearview AI has been slapped with over $100 million in GDPR fines from various European data protection agencies. France and the Netherlands are two European countries on Clearview AI’s tail.
The fines stem from Clearview’s refusal to comply with European privacy laws. These laws have mandated Clearview AI to obtain explicit consent before collecting and processing personal data. So far, Clearview AI has resisted paying these fines and has remained largely uncooperative.
Adding to its legal woes, Clearview AI was also entangled in a lawsuit with conservative investor and self-proclaimed investigative journalist, Charles Johnson. Johnson claimed he was a co-founder and was entitled to a share of the company’s profits.
Eventually, Johnson dropped his lawsuit but that wasn’t enough for Clearview. The company has countered with defamation and breach-of-contract claims against Johnson. These counterclaims are still ongoing.
Financial Health: Growth vs. Profitability
Despite its legal troubles, Clearview AI claims to be in its “strongest position ever“ financially. In his departure statement, Ton-That highlighted record-breaking revenue and growth figures for 2024. However, reports from Forbes suggest that the company is still struggling to secure major federal contracts and remains unprofitable.
Clearview AI has attracted high-profile investors. Peter Thiel and Naval Ravikant raised $30 million in a Series B funding round for Clearview AI in 2021. At that time, the company was valued at $130 million. However, with regulatory scrutiny intensifying, its long-term business viability remains uncertain.
What’s Ahead for Clearview AI?
The company’s future is at a crossroads due to new leadership. The appointment of Lambert and Schwartz could mean a more aggressive political and regulatory strategy and there’s the possibility of increased government contracts under the Trump administration.
However, the challenges facing Clearview AI remain steep:
- Regulatory pressure: Will the company eventually be forced to comply with GDPR fines and stricter privacy laws?
- Public perception: Can it shake off the negative reputation tied to its data-scraping practices?
- Financial hurdles: Will it secure the federal contracts needed to turn a profit?
