Google Ends Scale Ties

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Technology

Exclusive-Google, Scale AI's largest customer, plans split after Meta deal, sources say

Summary

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Google , the largest customer of Scale AI , plans to cut ties with Scale after news broke that rival Meta is taking a 49% stake in the AI data-labeling startup.

Google had planned to pay Scale AI about $200 million this year for the human-labeled training data that is crucial for developing technology.

Other major tech companies that are customers of Scale's , including Microsoft , are also backing away.

As part of the deal, Scale AI's CEO, Wang , will take a top position leading Meta 's AI efforts. Meta is fighting the perception that it may have fallen behind in the AI race after its initial set of Llama 4 large language models released in April fell short of performance expectations. (Reporting by Anna Tong and Kenrick Cai in San Francisco and Krystal Hu in New York ; editing by Kenneth Li and Matthew Lewis ).