Alphabet’s Google plans to end its relationship with Scale AI, an AI data-annotation startup, after Meta acquired a 49% stake in the company, valuing it at $29bn, reported Reuters.
As Scale AI’s largest client, in 2025 Google had allocated $200m for human-annotated data critical for technologies like Gemini, its ChatGPT competitor.
The company has now initiated discussions with Scale AI’s competitors to reassign this workload, sources familiar with the development told the publication.
Scale AI, previously valued at $14bn, generated $870m in revenue in 2024, with Google accounting for $150m of its services in that year.
Other major clients, including Microsoft and Elon Musk’s xAI, are also considering exiting, while OpenAI, which reduced its reliance on Scale months ago, will continue working with the startup as one of many data vendors, its CFO stated.
Google, Microsoft, and OpenAI declined to comment, while xAI did not respond to the request.
Scale AI’s core service involves human annotators, such as historians and scientists with advanced degrees, labelling complex datasets to refine AI models. These annotations, costing up to $100 each, are vital for generative AI developers.
Scale also serves self-driving car companies and the US government, which are expected to remain clients.
Meta’s stake has raised concerns among AI developers, who fear sharing proprietary data with Scale could expose their strategies to a rival, said Reuters.
Scale’s CEO, Alexandr Wang, and select employees will transition to Meta, where Wang will lead AI efforts.
The Meta deal will benefit Scale AI’s investors, including Accel and Index Ventures, and its employees.
https://finance.yahoo.com/news/google-terminate-scale-ai-partnership-105946983.html
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.