According to a Reuters story, Meta’s multibillion-dollar investment in data annotation firm Scale AI is causing significant clients, such as Google and Microsoft, to reevaluate their collaborations with the company.
In 2025, Google planned to pay Scale AI about $200 million for data labeling services that are necessary for creating generative AI models.
But because of Meta’s participation, sources told Reuters the corporation is now talking to other manufacturers and looking into other options. Google chose not to respond to the inquiry.
Similar to OpenAI as well as Google, which apparently took a similar choice months ago, Microsoft is also anticipated to reduce its involvement with Scale AI. According to the CFO of OpenAI, the company still collaborates with Scale, but only as a member of a larger network of data providers.
The investigation comes after Meta invested $14.3 billion in Scale AI, giving the social media behemoth a 49% non-voting share in the business.
As part of the deal, Alexandr Wang, the CEO of Scale, joined Meta to assist in spearheading its “superintelligence” project, which aims to create artificial general intelligence (AGI).
A Scale representative stressed that the business still runs autonomously and takes strong precautions to protect customer information, although she declined to comment on specific client relationships. “Our company is still doing well,” the representative told TechCrunch.
In the ecosystem of AI development, scale AI is essential, especially when it comes to supplying annotated datasets for training big language models. Clients include US government agencies, self-driving car companies, and leading technological corporations.