Meta’s significant investment in Scale AI is reportedly causing some of the startup’s major customers to reconsider their partnerships. According to recent reports, Google had plans to spend around $200 million on Scale this year but is now exploring options with its competitors and considering ending its ties. Similarly, Microsoft is said to be reevaluating its relationship with Scale, and OpenAI reportedly made a similar decision months ago. However, OpenAI’s CFO mentioned that the company will continue collaborating with Scale among other vendors.
Scale AI’s client roster includes self-driving car companies and government agencies, but its primary customers are generative AI firms seeking access to specialized data annotators who can help train their AI models effectively.
Google has declined to comment on these developments. A Scale spokesperson told TechCrunch that the company’s business remains strong and emphasized that Scale will continue operating independently, prioritizing data security for its clients.
Interestingly, Meta invested a substantial $14.3 billion for a 49% stake in Scale AI, with Scale CEO Alexandr Wang joining Meta to spearhead efforts in developing advanced AI capabilities, including “superintelligence.”
