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After Meta invested $14.3 billion in Scale AI, tech giants are reconsidering their collaborations with the startup. A Reuters report claims that Google is now reevaluating the agreement and looking into other options after having originally intended to spend $200 million with Scale AI in 2025. According to reports, Microsoft and OpenAI are also retreating, indicating wider worries in the AI industry.

Why Big Tech Is Backing Away

The change in attitude appeared after Meta purchased 49 percent of Scale AI and assigned CEO Alexandr Wang to advance its superintelligence program. Rivals now fear that sensitive data- and the future of their technology- could be aligned with a competitor, since Scale handles the crucial labelling that trains generative models.

  • OpenAI has already reduced its dependence on Scale but intends to keep a working relationship alongside several other suppliers.
  • Microsoft, meanwhile, is said to be reconsidering the deal, though it has yet to issue an official update.

Scale AI Responds to Concerns

While Scale declined to discuss its contract with Google, a company spokesperson told TechCrunch that business remains strong and that it will continue acting as an independent firm focused on protecting customer data.

Key Customers of Scale AI

Scale AI supports a diverse portfolio of customers, including:

  • Generative AI leaders such as Google, OpenAI, and Microsoft
  • Companies developing self-driving cars
  • Contracts with U.S. defence and intelligence agencies

At its core, Scale relies on skilled human annotators who label and refine datasets, delivering the quality that next-generation models demand.

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Meta's recent, substantial stake in Scale AI has shaken the field, prompting competing tech giants to reassess their ties to a supplier now closely tied to the Facebook parent. Even though Scale talks up its operational independence, the fierce race for AI leadership is pushing some customers to explore alternatives.

As such, partnerships grow ever more strategic, the episode could reshape the way the industry gathers, tags, and secures its most valuable training data.

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