OpenAI Cuts Ties with Scale AI Following Meta Deal
OpenAI is phasing out its work with Scale AI and cutting ties with the data provider following Meta’s deal with the startup, an OpenAI spokesperson told Bloomberg on Wednesday. Sarah Friar, the chief financial officer of OpenAI, previously suggested the company would continue its work with Scale AI. However, it appears OpenAI has changed its tone.
According to OpenAI, they were already in the process of winding down their work with Scale AI before Meta’s announcement of investing billions in the startup and appointing CEO Alexandr Wang. OpenAI spokesperson mentioned that they were exploring other providers for more specialized data to enhance their AI models.
The decision of OpenAI to sever ties with Scale AI raises concerns about the future of Scale AI’s core data labeling business. Reports emerged last week that Google was also considering dropping Scale AI as a data provider. With rumors circulating about Meta’s deal with Wang, competitors of Scale AI reported an increase in interest from AI model providers seeking “neutral” partners.
In response to the speculation, Scale AI’s general counsel published a blog post emphasizing that Meta would not receive any preferential treatment. They assured that confidential information from other customers would not be shared with Meta, and Wang would not be involved in day-to-day operations. However, despite these statements, it seems that Scale AI’s major customers are already shifting away from the data provider.
In a separate blog post, Scale AI’s interim CEO Jason Droege announced that the company would focus on its applications business, which involves developing custom AI applications for governments and enterprises.
