US EditionGoogle, Scale AI’s Largest Customer, Plans to Split Away After Meta Deal, Sources Say
- Google, Scale AI's largest customer, plans to cut ties after news that Meta is acquiring a 49% stake in Scale AI this year.
- Meta's investment values Scale AI at $29 billion, up from $14 billion before the deal, prompting concerns among rival AI companies.
- Scale AI, founded in 2016 and generating $870 million in 2024 revenue, provides critical human-labeled training data for AI models used by major tech firms.
- Reports indicate that Google intended to pay around $200 million this year for services from Scale AI but has been working to broaden its range of data providers for over a year and is now aiming to end its major contracts with Scale AI, a transition that could happen swiftly due to the nature of the agreements.
- The Meta agreement led several key clients of Scale AI, such as Microsoft and the AI company founded by Elon Musk, to reconsider their partnerships, while rivals like Labelbox anticipate substantial revenue growth by attracting these departing customers.
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Exclusive-Google, Scale AI's largest customer, plans split after Meta deal, sources say
SAN FRANCISCO :Alphabet's Google, the largest customer of Scale AI, plans to cut ties with Scale after news broke that rival Meta is taking a 49 per cent stake in the AI data-labeling startup, five sources familiar with the matter told Reuters.Google had planned to pay Scale AI about $200 million this year
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