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OpenAI to Phase Out Work with Scale AI Amid Meta Deal

June 19, 2025Updated:June 19, 2025No Comments2 Mins Read
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OpenAI to Phase Out Work with Scale AI Amid Meta Deal
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OpenAI to Phase Out Work with Scale AI Amid Meta Deal

OpenAI is scaling again its contracts with Scale AI, an information labeling startup just lately acquired by social media large Meta.

Based on a Thursday report from Bloomberg, the ChatGPT maker is winding down its reliance on the startup’s information, a couple of days after Meta introduced a $14.8 billion deal for a 49% possession stake in Scale AI.

The acquisition was Meta’s second-largest and also will have Scale CEO Alexandr Wang becoming a member of Meta’s experimental AI mission. The businesses introduced the deal on June 12.

Scale AI provides labeled information used to coach and enhance synthetic intelligence (AI) fashions. The startup, based in 2016 and backed by over 100 buyers, is a provider to widespread AI corporations together with Anthropic, Cohere and Adept. Based on PitchBook, it raised $100 million in a Collection C spherical in 2019. 

One other firm reportedly phasing out contracts with Scale is Google. Based on Reuters, the transfer is backed by considerations that the deal may grant Meta insights into opponents’ AI developments.

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An OpenAI spokesperson instructed Bloomberg the corporate began phasing out its contracts with Scale over the previous yr, searching for extra specialised information for its AI fashions. The startup accounted for a small portion of OpenAI’s information wants.

In a press release in regards to the deal, Scale interim CEO Jason Droege mentioned that the startup “stays, unequivocally, an impartial firm,” including that “nothing has modified about our dedication to defending buyer information.”

OpenAI is now betting on various information suppliers for its operations, together with newcomers within the sector akin to Mercor.

Based on Bloomberg, Scale initially employed “a military of contractors” to label photographs and textual content for early AI methods over the previous few years. Later, the corporate moved to rent extra educated contractors to help within the growth of refined AI fashions.

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