Google is reportedly planning to end its business relationship with Scale AI, a data-labeling company that supports artificial intelligence projects.
The move comes after Meta invested heavily in Scale AI, raising concerns among some of its existing partners.
The decision became known after reports indicated that Google, which had initially set aside $200 million to pay Scale this year, is now exploring other vendors instead.
Microsoft is also believed to be reconsidering its dealings with the company, while OpenAI is said to have scaled down its involvement with Scale earlier, although it still uses its services among others.
Scale AI mainly provides annotated data that helps train AI systems.
Its clients range from companies working on self-driving cars to organizations building generative AI models, including some in the U.S. government.
However, the recent investment by Meta ,said to be worth over $14 billion for nearly half of Scale AI, has reportedly made some partners uneasy.
Scale’s CEO, Alexandr Wang, has also joined Meta to support its efforts in building advanced AI.
Despite the changing business climate, Scale AI has stated that its operations remain strong.
The company has assured that it continues to function independently and prioritizes customer data security.
