June 16, 2025 – Meta’s substantial investment in Scale AI is raising eyebrows among some of the startup’s existing clients. According to a Reuters report, Google, which had initially planned to pay Scale AI $200 million this year, is now in discussions with Scale’s rivals and is considering ending its partnership with the company.
Microsoft, too, has reportedly shown intentions to scale back its collaboration with Scale AI. This move follows a similar decision allegedly made by OpenAI several months ago. However, OpenAI’s CFO has clarified that the company will continue to work with Scale AI as one of its many suppliers.
Scale AI boasts a diverse client base that includes self-driving car companies and even the U.S. government. But Reuters sources indicate that its largest client segment is actually made up of generative AI firms. These companies are in urgent need of skilled professionals who can label data to train their models, and Scale AI has been a crucial partner in this regard.
Interestingly, Google has declined to comment on the Reuters report. Similarly, a spokesperson for Scale AI has refrained from addressing specific questions about the company’s relationship with Google. However, the spokesperson assured TechCrunch that Scale’s business remains robust and that the company will continue to operate independently, with a strong commitment to safeguarding client data.
Earlier reports had highlighted Meta’s massive $14.3 billion investment in Scale AI, which secured a 49% stake in the company. Additionally, Scale AI’s CEO, Alexandr Wang, has joined Meta to lead the development of “super intelligence” initiatives within the tech giant.
