OpenAI Cuts Ties With Scale AI Days After Meta’s Investment - Know More Here
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OpenAI announced it has officially stopped using Scale AI for data-labeling services. The move comes days after Meta disclosed a $14.3 billion investment in Scale—taking a 49% stake and recruiting its founder, Alexandr Wang—to support its new “superintelligence” initiative .
An OpenAI spokesperson clarified that Scale had always supplied only a small portion of its data pipeline. As AI models become more advanced, the company has shifted toward vendors offering more specialized and expert-driven datasets. The decision to sever ties with Scale began months before Meta’s deal but intensified once the investment was made known .
Budget labels from Scale appear to have dropped off entirely for OpenAI, reinforcing rumors about a broader industry exodus. Both Google and Elon Musk’s xAI are reported to have paused work with Scale amid concerns that Meta’s involvement could expose progress or proprietary data to a direct competitor .
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Scale quickly pushed back through a blog post. Jason Droege, the interim CEO, emphasized that the company remains independent, serving multiple sectors—including governments and enterprise—with no sharing of client data with Meta.
Industry analysts note that neutral, high-trust data vendors are critical for AI training. Meta’s growing influence at Scale has prompted project cancellations. A Business Insider report quoted contractors working on Google and xAI projects who said their dashboards went blank overnight. One contractor summed it up bluntly: “Work has been extremely scarce… now it may have dried up almost completely” .
Scale still plans to expand in enterprise and government spaces. Competitors like Handshake, Turing, and Appen are reportedly already seeing increased demand . Yet OpenAI is moving ahead with providers like Mercor, which claims to supply domain-specific data from PhD- and specialist-level contributors .
This fallout highlights growing tension in the data-labeling sphere. As AI developers race to refine reasoning and agent capabilities, they increasingly favor partners who guarantee both domain expertise and neutrality—without ties to direct competitors.
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