Google reportedly plans to cut ties with Scale AI

The Google logo and lettering can be seen on the facade of the company's Munich headquarters.
18 February 2025, Bavaria, Munich: The Google logo and lettering can be seen on the facade of the company’s Munich headquarters on February 18, 2025 in Munich (Bavaria). The company’s development center is located in Arnulfpark. More than 2,500 employees work for the US company at various locations in Germany. The parent company of Google LLC is Alphabet Inc. Photo: Matthias Balk/dpa (Photo by Matthias Balk/picture alliance via Getty Images) | Image Credits:Matthias Balk/picture alliance / Getty Images

Meta’s big investment in Scale AI may be giving some of the startup’s customers pause.

Reuters reports that Google had planned to pay Scale $200 million this year but is now having conversations with its competitors and planning to cut ties with the startup. Microsoft is also reportedly looking to pull back, and OpenAI supposedly made a similar decision months ago, although its CFO said the company will continue working with Scale as one of many vendors.

Scale’s customers include self-driving car companies and the U.S. government, but Reuters says its biggest clients are generative AI companies seeking access to workers with specialized knowledge who can annotate data for training models.

A Scale spokesperson declined to comment on the company’s relationship with Google, but he told TechCrunch that Scale’s business remains strong, and that it will continue to operate as an independent company that safeguards its customers’ data.

Earlier reports suggest that Meta invested $14.3 billion in Scale for a 49% stake in the company, with Scale CEO Alexandr Wang joining Meta to lead the company’s efforts to develop “superintelligence.”

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