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OpenAI is officially phasing out its partnership with Scale AI, the one-critical data provider it relief on for labelling and training AI models, the company confirmed to Bloomberg on Wednesday.
The decision follow Meta's recent multi-billion-dollar investment in Scale AI and the onboarding of its CEO, Alexandr Wang.
Though OpenAI CFO Sarah Friar had previously signalled continued collaboration with Scale, as per media reports, the latest developments show a clear shift in strategy.
According to a spokesperson cited in the report, OpenAI was already in the process of winding down work with Scale prior to Meta's announcement. The AI leader is now reportedly exploring alternate. more specialized data providers to support the development of its next-generation models.
The split adds to growing questions about the viability and neutrality of Scale AI's core business, which has historically depended on contracts with top-tier labs. Just last week, Reuters reported that Google too was evaluating its ties with the company and might follow suit in dropping Scale as a data partner.
The news has reportedly sent competing data providers into overdrive, as AI companies scramble for alternatives not affiliated with major tech players, the report added.
Scale AI's general counsel released a blog post on Wednesday stressing that Meta would not receive special access or confidential information from other clients. The post emphasized that Wang, despite his new role, would not be involved in the day-to-day business or client engagements.
In a separate blog post, interim CEO Jason Droege acknowledged the moment of transition, saying the company would now "double down" on its applications business- shifting its focus toward building AI tools for governments and large enterprises.
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