OpenAI Phasing Out Collaboration with Scale Prior to Meta Agreement

Scale AI’s recent $15 billion deal to sell a 49% stake to Meta has sparked concerns among its clients, including major AI labs, about data privacy. Critics worry that the deal could erode Scale’s position in the data labeling market as clients, like OpenAI, consider severing ties due to potential conflicts of interest. While Scale has denied that OpenAI is reducing its spending, industry insiders report that many clients are seeking alternatives amid fears of data exposure. The CEO of Scale, Alexandr Wang, is transitioning to lead a new AI lab at Meta. This merger has left Scale staff uneasy about possible implications for their work. Smaller competitors like Mercor and Turing are seizing this moment to attract clients seeking neutrality. Although the deal could benefit early investors, doubts remain about its overall impact on Scale, especially given its established reliance on a vast network of clickworkers. Regulators may still block the arrangement.

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