Last week, Meta invested $14.3 billion in Scale AI to acquire a 49% stake in the company. As a result, Google, Microsoft and xAI are now in the process of ending their business relationship with Scale AI, according to a Reuters report.
According to insiders, Google has contacted several competitors to Scale AI to offer their services. The main service offered by Scale AI is labeled data that can be used to train artificial intelligence (AI) models. Microsoft and xAI are also reportedly in the process of no longer using Scale AI services. OpenAI has also begun reducing its data usage from Scale AI over the past few months.
No reason was given why the three big tech companies want to stop using Scale AI services. Most likely, it is to avoid Meta's perceived competition in the AI field.
Meta is believed to have acquired some of Scale AI because it needs the expertise of its employees and to obtain better training data after it was found to be using data stolen via Torrent. The failure of the development of the new Behemoth AI model at Meta was the catalyst for the purchase by Mark Zuckerberg, who has always been willing to take over competitors if it is found to be profitable for the company