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2d ago

Meta’s $14.3 Billion Stake in Scale AI Prompts Major Clients to Exit Partnerships

The transaction has intensified fears that Meta could access confidential datasets, prompting leading AI developers to rethink their partnerships.

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

  • Meta completed its $14.3 billion investment for a 49% stake in Scale AI, valuing the startup at $29 billion while maintaining its operational independence.
  • Scale AI co-founder and CEO Alexandr Wang will depart to lead Meta’s new superintelligence team, stoking concerns over conflicts of interest.
  • Google has begun redirecting its roughly $200 million annual data-labeling workload to rival providers over data security and competitive risk.
  • Microsoft and Elon Musk’s xAI are also pulling back from Scale AI, driving rapid demand growth for competitors such as Labelbox, Appen and Turing.
  • OpenAI says it will continue working with Scale AI to preserve a diverse vendor ecosystem, according to CFO Sarah Friar.