In brief
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Meta’s investment in Scale AI could be giving some customers pause.
Reuters reported that Google had originally planned to pay Scale 200 million dollars this year, but is now in talks with its competitors. Planning to cut tiesMicrosoft is also said to be looking to pull away, and OpenAI made a similar choice months ago. However, its CFO stated that the company would continue working with Scale, as one of several vendors. Scale’s clients include self-driving cars companies and the U.S. Government, but Reuters reports that its biggest customers are generative AI firms seeking workers with specialized expertise who can annotate datasets to train models. Google declined to comment. A Scale spokesperson declined comment on the company’s relationship with Google. However, he told TechCrunch Scale’s business is strong and it will continue to run as an independent company, which safeguards its customer’s data.
According to earlier reports, Meta invested $14.3 billion for a 49 percent stake in Scale. Alexandr Wang, Scale’s CEO, joined Meta to lead its efforts to develop “superintelligence.”
