Search engine giant Google is reportedly planning to sever its relationship with its biggest client, Scale AI, after it was revealed that Mark Zuckerberg’s Meta Platforms Inc. would be purchasing a 49% share in the AI data-labeling business.
Google made this decision because it was worried that Meta’s substantial investment may reveal Google’s proprietary AI research and roadmap to a major rival. Google had previously intended to spend an estimated $200 million with Scale AI this year.
According to people with knowledge of the situation, Google has already started talking to Scale AI’s competitors about moving its considerable workload.
Not only is Google feeling uneasy, but other big tech firms like Microsoft (founded by Bill Gates) and Elon Musk’s xAI are also apparently pulling away from Scale AI.
Despite Scale AI’s recent valuation increase to $29 billion after Meta’s investment, this possible loss of big customers is a serious setback for the company.
