CEO of Clearview AI, a controversial facial recognition startup, has resigned

The CEO of Clearview AI, the controversial facial recognition startup that created a searchable database of 30 billion photos by scraping the internet, has resigned, according to a statement he supplied to TechCrunch.

The CEO, Hoan Ton-That, said “it is time for the next chapter in my life” and that he would remain on as a board member of Clearview AI. He declined to comment when asked for more details on what specifically sparked his resignation. The news was first reported by Forbes.

Clearview AI now has two “co-CEOs,” early investor Hal Lambert and co-founder Richard Schwartz, who want to capitalize on new “opportunities” under the Trump administration, according to a statement Clearview AI sent to TechCrunch.

Both men have a long history in Republican politics. Lambert’s investment firm, Point Bridge Capital, is best-known for launching the MAGA ETF in 2017, which invests in corporations supportive of Republican candidates. Meanwhile, Schwartz served as a senior advisor to Rudy Giuliani during his tenure as mayor of New York City. 

Clearview AI sells access to its facial recognition database to law enforcement and federal agencies who use it to identify suspects or find missing people. Because the startup obtained the photos without people’s consent, it has had to fend off multiple privacy suits and fines. 

As of September 2024, Clearview AI has racked up over $100 million in GDPR fines from European data protection agencies in the Netherlands, France, and elsewhere. Clearview AI has historically remained uncooperative, refusing to pay these fines. (Clearview didn’t respond to a request for comment from TechCrunch asking if it has paid any yet.)

Clearview AI has also faced a lawsuit from conservative investor and self-described investigative journalist Charles Johnson over claims that he was a co-founder and owed a share of commissions. Johnson recently dropped the suit, per a legal filing. But Clearview AI’s counterclaims in the suit, which allege defamation and breach of contract against Johnson, are ongoing, Biometric Update reported.

Ton-That declined to elaborate on his plans when asked by TechCrunch. According to his statement, Clearview AI is in its “strongest position ever” financially, achieving its highest growth and revenue in 2024. However, the startup has struggled to win large federal contracts and remains unprofitable, Forbes reported.

Clearview AI, whose investors include Peter Thiel and Naval Ravikant, raised $30 million in a Series B round in 2021 that valued the company at $130 million, according to a post on its website.