The artificial intelligence (AI) firm OpenAI has reduced its use of Scale AI’s services after Meta announced a major investment in the data labeling startup.
The decision to scale back was already in motion before Meta announced its plan to acquire a 49% stake in the company for $14.8 billion.
According to a June 19 report by Bloomberg, OpenAI confirmed that it had started moving away from Scale over the past year.
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A spokesperson told Bloomberg that the company is currently focused on collaborating with suppliers that offer more specialized data. While Scale was one of its data providers, the share of data OpenAI received from the company was small.
OpenAI is working with other firms to meet its data requirements. One of the companies it has turned to is Mercor, a newer name in the industry.
Founded in 2016, Scale AI provides labeled data that helps train machine learning models. It has supplied data to many AI developers, including Anthropic, Cohere, and Adept.
After the Meta deal was announced, Scale’s interim CEO, Jason Droege, stated that the company will continue to operate independently. He also emphasized that Scale is still fully committed to keeping its customers’ data secure.
Other major tech firms, including Google, Microsoft, and xAI, have also decided to cut ties with Scale AI following Meta’s investment. Why? Read the full story.
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