Google to Split from Scale AI After Meta’s Big Stake

Google, Scale AI’s largest customer, plans to sever its partnership following Meta’s $14.8 billion acquisition of a 49 percent stake in the data-labeling specialist. According to insiders, Google fears proprietary training data could indirectly benefit its direct competitor. The decision reflects broader shifts in the data-infrastructure market, where control over high-quality labeled data has become a strategic asset. Scale AI’s annotation services underpin many leading AI models, and Meta’s deal grants it significant influence over a key supplier. Clients such as Tesla and OpenAI are now re-evaluating their annotation pipelines, exploring alternatives like Hive and Alegion. The split could spark a wave of new partnerships and consolidation in the annotation space. While Google explores in-house labeling solutions, Meta’s move cements its ambition to control both model development and the data that trains those models. The fallout underscores how critical data partnerships have become in competitive positioning among hyperscalers and social-media giants.
Source: reuters.com