Meta Platforms, Inc. (NASDAQ:META) has reportedly paused its work with data contractor Mercor following a major security breach.



<h2>Meta Freezes Mercor Work Amid Security Concerns</h2>



The suspension is indefinite, with sources indicating other AI labs are also reevaluating ties with Mercor, Wired reported last week, citing two sources.



Mercor plays a critical role in building custom datasets used to train advanced AI systems.



Meta did not immediately respond to Benzinga's request for comments.



<h2>OpenAI Investigates, Says User Data Not Impacted</h2>



OpenAI, the parent of ChatGPT, has not halted its projects with Mercor but is investigating the incident.



A spokesperson told the publication that the breach in no way affects OpenAI user data, though the company is reviewing whether its proprietary datasets were exposed.



OpenAI and Anthropic did not immediately respond to requests for comment.



<h2>Supply Chain Hack Linked To LiteLLM Compromise</h2>



The breach appears tied to a compromise of LiteLLM, a widely used AI integration tool.



Cybercriminal group TeamPCP is believed to be behind the attack, which may have impacted thousands of organizations in a broader supply chain campaign.



In an email to staff on March 31, Mercor said, &#34;There was a recent security incident that affected our systems along with thousands of other organizations worldwide.&#34;



<h2>Confusion Over Hacker Claims, Worker Impact Emerges</h2>



A group using the name Lapsus$ also claimed responsibility, though researchers dispute the link, the report said.



However, researchers note that multiple cybercriminal groups now intermittently adopt the Lapsus$ name. They said, Mercor's confirmation of a LiteLLM link suggests the breach was likely carried out by TeamPCP or an affiliated actor.



Mercor did not immediately respond to Benzinga's request for comments



Price Action: META shares closed at $574.46 on Thursday, down 0.82%, according to Benzinga Pro.



Benzinga Edge Stock Rankings show Meta remains in a downtrend across short, medium and long-term time frames, despite placing in the 90th percentile for Quality.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo: PJ McDonnell / Shutterstock

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Meta Platforms, Inc. has suspended its collaboration with data contractor Mercor following a significant security breach linked to LiteLLM. The indefinite suspension has prompted other AI labs to reassess their relationships with Mercor. Meanwhile, OpenAI is investigating the incident but claims that user data remains unaffected. The breach is believed to be connected to a cyberattack by the group TeamPCP, impacting numerous organizations. Despite the incident, Meta's stock closed at $574.46, down 0.82%.

- Meta Platforms, Inc. has paused its work with data contractor Mercor due to a significant security breach involving the AI integration tool LiteLLM, which is believed to have affected many organizations.  
- Although OpenAI is investigating the incident, it claims user data remains unaffected while reviewing potential exposures to its proprietary datasets.  
- Cybercriminal group TeamPCP is suspected to be behind the breach, which has led to a reevaluation of relationships with Mercor by other AI labs.

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Meta Halts Work With Mercor After Major Breach, While ChatGPT-Parent OpenAI Investigates Incident: Report