
ChatGPT-maker OpenAI joins Google, Microsoft in ‘cutting ties' with ScaleAI after Mark Zuckerberg paid it billions
OpenAI
, the developer of ChatGPT, is in the process of phasing out its data-labeling work with startup Scale AI, a report has claimed. This decision comes just days after Facebook parent company
Meta
announced a multi-billion dollar investment in
Scale AI
and hired its founder, signaling new uncertainty for Scale's business.
According to a report by Fortune, an OpenAI spokesperson said that Scale AI accounted for only a small fraction of OpenAI's overall data needs, adding that the ChatGPT maker was already in the process of reducing its reliance on Scale before Meta, a direct competitor to OpenAI, acquired a 49% stake in the firm.
It is to be noted that OpenAI's CFO said that the company scaled down its reliance months ago but will continue working with Scale as one of its many vendors. OpenAI had reportedly been seeking other providers for more specialised data crucial for training increasingly advanced artificial intelligence (AI) models.
Meta's $14.3 billion deal with ScaleAI
Meta's substantial investment of $14.3 billion in Scale AI is part of a broader strategy to bolster its own AI capabilities. As part of the deal, Scale AI's CEO,
Alexandr Wang
, is transitioning to Meta to lead a new "superintelligence" unit focused on developing more powerful, hypothetical forms of AI software. Other Scale employees are also expected to join Wang at Meta.
Founded in 2016, Scale AI has been a prominent provider of data labeling services essential for building AI models, with a client roster that notably included
Google
,
Microsoft
and
Elon Musk's xAI
.
Recently, a report claimed that these companies are already moving to cut ties with Scale AI, citing concerns over potential conflicts of interest. They say that the social media giant may gain insights into their proprietary AI development efforts.
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