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Leading AI Firms Exit Scale AI After Meta Acquires 49% Stake

Developers are pivoting to independent data-labeling vendors to safeguard proprietary datasets from potential Meta access

OpenAI's CFO, Sarah Friar, says the company plans to continue working with Scale AI.
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Overview

  • Meta’s $14.8 billion purchase valued Scale AI at $29 billion and brought co-founder Alexandr Wang on board to lead its superintelligence efforts
  • Google, which had planned to spend about $200 million on Scale AI this year, is ending its relationship over data security concerns
  • Microsoft and Elon Musk’s xAI are also re-evaluating or cutting ties amid fears their proprietary training data could be exposed to Meta
  • Scale AI will continue operating independently under interim CEO Jason Droege but faces an uncertain growth trajectory without its largest clients
  • Competitors such as Labelbox, Handshake and Turing report surging demand as AI labs seek alternative data-labeling providers