OpenAI has initiated a gradual phase-out of its partnership with Scale AI and is actively seeking alternative data providers to advance its AI model development. A spokesperson for OpenAI confirmed the decision to Bloomberg, revealing Meta had secured an agreement with the startup just prior to this strategic shift. This marks a reversal from previous statements by OpenAI's CFO Sarah Friar, who had maintained the company would continue collaborating with Scale AI. According to OpenAI, the transition began before Meta announced a multibillion-dollar investment in Scale AI and appointed Alexandr Wang as CEO. The organization is now prioritizing specialized datasets from diverse providers to enhance its AI capabilities. The decision has sparked concerns about Scale AI's core data labeling operations, particularly as recent Reuters reporting indicated Google was also considering ending its collaboration with the startup. In response to growing speculation about Meta's partnership with Wang, several of Scale AI's competitors reported sudden surges in inquiries from AI model developers seeking neutral partners. Scale AI's Chief Legal Officer attempted to dispel concerns about preferential treatment for Meta in a blog post, emphasizing that no confidential client data would be shared and that Wang would not participate in day-to-day operations. However, evidence suggests OpenAI - Scale's largest client - is already shifting toward alternative data providers, signaling potential structural changes for the startup. In a separate statement, interim CEO Jason Droege outlined plans to intensify focus on the company's enterprise applications division, which develops customized AI solutions for government and business clients. This strategic pivot comes as the AI industry continues to evolve rapidly with shifting partnership dynamics.