This month, Meta closed its largest investment yet, a $14.3 billion investment in Scale AI. It also hired the startup’s CEO, Alexander Wang. It seems that Scale AI’s big customers didn’t like the changes.
This month, Meta closed its largest investment yet, a $14.3 billion investment in Scale AI. It also hired the startup’s CEO, Alexander Wang. It seems that Scale AI’s big customers didn’t like the changes.
Scale AI provides data labeling services to help companies train machine learning models. Major clients include OpenAI, Google, and Microsoft.
OpenAI had previously said it would continue working with Scale AI. But Meta’s investment has changed that. Now OpenAI is looking for other providers of more specialized data to develop more advanced AI models, TechCrunch writes .
Last week, it was reported that Google is discussing plans to drop Scale AI as a data provider as well. The tech giant had planned to pay Scale AI $200 million this year.
Microsoft also plans to abandon cooperation with the startup.
At the same time, the startup refutes the idea that Meta will receive preferential treatment after this deal. Scale AI management said that it will not share confidential information of other customers with Meta, and Wang will not be involved in day-to-day operations.
Despite these statements, it appears that Scale AI’s largest customers are already moving away from the data provider. Moreover, as rumors of the Meta deal spread, some of Scale AI’s competitors said they had received an influx of interest from AI model providers looking for “neutral” partners.
