Meta’s recent $14.3 billion investment in Scale AI — granting it a 49% ownership stake — is reportedly causing concern among the startup’s other high-profile clients. Notably, Google had initially planned to spend $200 million with Scale this year but is now exploring alternatives, according to Reuters. Microsoft is also said to be reassessing its relationship with the company, while OpenAI reportedly reduced its involvement months ago, though it still maintains Scale as one of its vendors.
The concerns stem from the close ties between Scale AI and Meta, particularly after Scale’s CEO, Alexandr Wang, joined Meta to help lead its “superintelligence” initiative. This development has prompted competing firms to question whether Scale can maintain vendor neutrality and properly safeguard proprietary data. Although Scale has assured that it will continue to operate independently, the perceived overlap with Meta is generating doubt about its ability to serve multiple tech giants simultaneously.
Meta’s Stake in Scale AI Sparks Client Backlash as Google and Microsoft Reevaluate TiesScale AI’s Critical Role in Training AI Models Raises New Questions Amid Growing Industry Partnerships and Meta’s Expanding Strategic Influence
Scale AI has become a critical player in the generative AI space, supplying annotated data and human-in-the-loop services to train advanced models. Its client base includes not just tech companies, but also sectors like autonomous vehicles and government entities. These organizations rely on Scale’s workforce of trained annotators for high-quality, specialized data, a vital component in building effective AI systems.
Both Google and Scale declined to comment specifically on the status of their relationship. However, a Scale spokesperson emphasized that the business remains strong and independent, with ongoing commitments to data security. Despite the high-profile retreat of some partners, the company appears focused on maintaining its role as a foundational data provider in the competitive AI ecosystem. Nevertheless, Meta’s sizable influence over Scale could continue to reshape the dynamics between the startup and its broader customer base.
