Google may cut ties with Scale AI after Meta’s $14.3B stake
Google reportedly intends to sever its relationship with Scale AI, potentially influenced by Meta’s significant investment in the AI startup. The move follows similar reported decisions by Microsoft and OpenAI.
Reuters reports that Google had planned to pay Scale AI $200 million this year. Google is now reportedly in discussions with Scale AI’s competitors. According to Reuters, Microsoft is also considering reducing its reliance on Scale AI. OpenAI previously made a comparable decision, although its CFO stated the company would continue utilizing Scale AI as one of multiple vendors.
Scale AI’s clientele encompasses self-driving car companies and the U.S. government. Reuters identifies generative AI companies as Scale AI’s largest clients, seeking specialized workers for data annotation to train AI models.
Google has declined to comment on these reports. A Scale AI spokesperson declined to comment on the specifics of the company’s relationship with Google. The spokesperson told TechCrunch that Scale AI’s business remains strong and that it will operate as an independent entity, protecting its customers’ data.
Earlier reports indicate that Meta invested $14.3 billion in Scale AI, acquiring a 49% stake. Following this investment, Scale AI CEO Alexandr Wang joined Meta to lead the company’s superintelligence development efforts.