Google, the largest client of Scale AI, plans to terminate the cooperation after Meta invests in it.

Google, Scale AI's largest customer, plans to end cooperation after Meta's investment

Five people familiar with the matter revealed that after news broke that rival Meta had taken a 49% stake in AI data labeling startup Scale AI, Google, its largest customer, plans to sever its partnership with Scale. Google originally planned to pay Scale AI around $200 million this year for human-labeled training data that is crucial for technology development. Scale AI had revenue of $870 million in 2024, and Google paid approximately $150 million last year. Google has held talks with several of Scale AI's competitors this week, seeking to transfer most of its workload. Other major tech company customers of Scale, including Microsoft and Elon Musk's xAI, are also considering pulling out. OpenAI decided to withdraw several months ago, although its spending was far lower than that of Google. The significant decline in Scale's business comes as Meta invests in the company at a valuation of $29 billion, up from a pre-deal valuation of $14 billion for Scale AI.

—— Reuters

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