Google Gears Away: Tech Giant Considers Cutting Ties with Scale AI

Google is reportedly planning to sever its relationship with generative AI startup Scale AI, according to Reuters. Although the tech giant had earlier planned to pay Scale $200 million by 2025, it is now exploring partnerships with rival companies.
Microsoft is also said to be reconsidering its association with Scale, the report notes. OpenAI has already scaled back its engagement with the company, although its CFO confirmed that “Scale is still one of many vendors.”
Scale AI is known for providing data annotation services that help train AI models, making it a popular choice among generative AI firms, autonomous vehicle developers, and even the U.S. government.
While both Google and Scale declined to comment due to confidentiality, a Scale spokesperson told TechCrunch that the company “is in a strong business position and will continue to operate independently, maintaining data security for its customers.”
Previously, Meta invested $14.3 billion in Scale AI, acquiring a 49% stake. Scale CEO Alexandr Wang is currently leading Meta’s ‘superintelligence’ development initiative.