OpenAI Phasing Out Scale AI as Meta Acquisition Unveiled

OpenAI is scaling back contracts with Scale AI, a data labeling startup acquired by Meta in a deal worth $14.8 billion.

According to a report from Bloomberg on [current date], OpenAI is winding down its reliance on the startup’s services. This decision follows Meta’s June 12 announcement that it secured a 49% stake in Scale AI.

Meta’s second-largest acquisition also includes the hiring of Scale AI’s CEO, Alexandr Wang, for its experimental AI division.

Scale AI provides essential labeled datasets for training and refining artificial intelligence models. Founded in 2016 and backed by over 100 investors, the company served major AI players including Anthropic, Cohere, and Adept. In 2019, Scale AI raised $100 million in a Series C funding round.

Reports indicate Google is also potentially concluding its deal with Scale AI, citing concerns that the Meta acquisition endangers competitors’ proprietary AI data.

OpenAI cited a past-year effort to secure more specialized data for its AI systems, a requirement the startup did not fulfill significantly, as a reason for the contract phase-out. Scale AI represented only a minor portion of OpenAI’s data requirements.

In a statement, Scale AI’s interim CEO, Jason Droege, reassured that the company maintains its independence and remains committed to customer data protection.

OpenAI is actively seeking alternative data suppliers amidst this transition.

Scale AI strategically evolved its workforce from largely unskilled annotators to more educated personnel, adapting its services for advanced AI model development.

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