Google is reportedly planning to sever ties with Scale AI, raising questions about the startup’s future amid significant investment from Meta. Reuters reports that Google, which had earmarked $200 million for Scale AI this year, is now exploring alternatives and engaging with competitors.
This potential shift follows Meta’s reported $14.3 billion investment in Scale AI, securing a 49% stake in the company. Furthermore, Scale AI CEO Alexandr Wang has reportedly joined Meta to spearhead its “superintelligence” development initiatives.
Microsoft is also reportedly considering reducing its reliance on Scale AI. OpenAI reportedly made a similar decision months ago, although its CFO clarified that the company will continue to collaborate with Scale AI as one of several vendors.
Scale AI’s clientele spans various sectors, including self-driving car companies and the U.S. government. However, generative AI firms seeking specialized data annotation services for model training constitute a significant portion of its customer base, according to Reuters.
Google declined to comment on the report. A Scale AI spokesperson declined to comment on its relationship with Google, but emphasized the company’s robust business performance and commitment to operating independently while safeguarding customer data. “Scale’s business remains strong, and that it will continue to operate as an independent company that safeguards its customers’ data,” the spokesperson told TechCrunch.
