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Read moreGoogle Plans to End Collaboration with Scale AI
Meta's substantial investment in Scale AI might make some startup customers think twice about their partnerships.
According to Reuters, Google originally planned to pay Scale $200 million this year but is now negotiating with its competitors and intends to terminate cooperation with the startup. Reports also suggest that Microsoft is considering withdrawing its partnership, while OpenAI made a similar decision months ago – although its CFO stated that the company will continue working with Scale as one of many suppliers.
Scale's clientele includes autonomous vehicle companies and the US government, but Reuters reports that its largest customers are generative AI companies seeking expert workers to label data for training models.
A spokesperson from Scale declined to comment on the company's relationship with Google but told TechCrunch that Scale’s business remains strong and will continue operating as an independent entity, ensuring protection of customer data.
Early reports indicate that Meta invested $14.3 billion in Scale to acquire 49% of the company, with Scale's CEO Alexandr Wang joining Meta to lead efforts in developing "superintelligence."
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