Meta’s multibillion-dollar investment in data annotation startup Scale AI is reportedly prompting major clients—including Google and Microsoft—to reconsider their partnerships with the company, according to a Reuters report.
Google had intended to pay Scale AI approximately $200 million in 2025 for data labeling services essential to developing generative AI models. However, sources told Reuters the company is now in discussions with competing vendors and exploring alternatives in light of Meta’s involvement. Google declined to comment on the matter.
Microsoft is similarly expected to scale back its engagement with Scale, while OpenAI reportedly made a similar decision months ago. OpenAI’s CFO confirmed that the company continues to work with Scale, but only as part of a broader network of data providers.
The scrutiny follows Meta’s $14.3 billion investment in Scale AI, which gave the social media giant a 49% non-voting stake in the company. As part of the agreement, Scale’s CEO Alexandr Wang joined Meta to help lead its “superintelligence” initiative focused on developing artificial general intelligence (AGI).
A spokesperson for Scale declined to comment on specific client relationships but emphasized that the company continues to operate independently and maintains strict safeguards to protect client data. “Our business remains strong,” the spokesperson told TechCrunch.
Scale AI plays a critical role in the AI development ecosystem, particularly in providing annotated datasets for training large language models. Clients include top-tier technology companies, self-driving vehicle firms, and US government agencies.