June 19, 2025 – OpenAI is in the process of winding down its partnership with Scale AI and severing ties with the data supplier following Meta’s recent collaboration with the company, a spokesperson for OpenAI informed Bloomberg on Wednesday.
This move represents a significant shift from OpenAI’s earlier stance. Previously, Sarah Friar, the Chief Financial Officer of OpenAI, had indicated that the company would continue its collaboration with Scale AI.
According to OpenAI, the company had already started reducing its reliance on Scale AI before Meta’s announcement last week of a multi-billion-dollar investment in Scale AI and the hiring of its CEO, Alexandr Wang. The OpenAI spokesperson told Bloomberg that the company has been actively seeking alternative suppliers to obtain more specialized data for the development of increasingly sophisticated AI models.
OpenAI’s decision has raised doubts about Scale AI’s core data labeling business. Last week, Reuters reported that Google was also contemplating ending its use of Scale AI as a data provider. When rumors of Meta’s partnership with Wang surfaced, some of Scale AI’s competitors stated that they had received numerous inquiries from AI model providers looking for “neutral” partners.
In a blog post published on Wednesday, Scale AI attempted to clarify that Meta would not receive any special treatment following the collaboration. Scale AI executives asserted that they would not share confidential information from other clients with Meta and that Wang would not be involved in the company’s day-to-day operations. Despite these assurances, the shift by OpenAI and other potential clients appears to indicate that Scale AI’s major customers are gradually moving away, which may force the company to reconsider its business model.
Notably, Jason Droege, the interim CEO of Scale AI, stated in another blog post on Wednesday that the company plans to increase its investment in its application business, which involves building customized AI applications for governments and enterprises.
