Google May End Partnership with Scale AI as Meta’s Investment Raises Concerns

Google is reportedly planning to cut ties with Scale AI, a startup known for helping companies train artificial intelligence models by providing high-quality data labeling services. According to a Reuters report, Google had planned to pay $200 million to Scale this year but is now reconsidering and talking to other vendors instead.

Meta’s large investment in Scale AI — a reported $14.3 billion for a 49% stake — appears to be making some of Scale’s major clients nervous. Microsoft is also said to be pulling back from working with the company, and OpenAI reportedly made a similar move months ago. However, OpenAI’s CFO clarified that while they are working with other vendors too, they will still continue using Scale for certain projects.

Scale AI works with various organizations, including self-driving car companies, generative AI firms, and even the U.S. government. Its main role is to provide expert workers who can accurately label data — a crucial step in training advanced AI models.

Neither Google nor Scale AI gave direct comments about the status of their relationship. However, a Scale spokesperson told TechCrunch that the company is still doing well, remains independent, and continues to protect its clients' data.

Meanwhile, Scale CEO Alexandr Wang has reportedly joined Meta to help lead its efforts to build “superintelligence” — a form of highly advanced AI. This close connection between Scale and Meta seems to be raising concerns among other tech giants who are also in the AI race.

In short, as Meta deepens its ties with Scale AI, other big players like Google and Microsoft are rethinking their relationships with the company — signaling shifting dynamics in the fast-growing AI industry.