Google is reportedly cutting ties with Scale AI after a significant investment by Meta, indicating rising concern among Scale’s top customers regarding the company's independence.
Initially, the company planned to pay up to $200 million to Scale AI this year, as reported by Reuters.
Scale AI secures major investment by Meta
However, amid Meta’s recent acquisition of a 49% stake worth $14.3 billion in Scale AI, the Alphabet-owned firm is currently in talks with other vendors and is reconsidering its partnership with the startup.
That said, Google is not alone as Microsoft is also reconsidering its position with Scale, while OpenAI has scaled back its engagement, although its CFO mentioned that Scale is one of a few vendors they still work with.
For those unaware, Scale AI, led by CEO Alexandr Wang, specialises in data labelling services leveraged to train advanced AI models.
These services are essential in establishing large language models (LLMs) and other machine learning tools, as they enhance precision and performance by refining datasets.
Despite the transitining collaborations, Scale insists its business remains strong.
The situation drew attention after Scale AI CEO joined Meta to lead its “superintelligence” initiative, raising questions about possible conflicts of interest.
