It is reported that OpenAI has terminated its collaboration due to a new deal between data labeling company Scale AI and Meta.

CN
8 hours ago

OpenAI is reducing its contracts with data labeling startup Scale AI, which was recently acquired by social media giant Meta.

According to a report by Bloomberg on Thursday, ChatGPT developer OpenAI is gradually decreasing its reliance on data labeling startup Scale AI. This decision comes just days after Meta announced its acquisition of a 49% stake in Scale AI for $14.8 billion.

This acquisition is Meta's second-largest deal, and Scale AI CEO Alexandr Wang will also join Meta's experimental artificial intelligence project. The transaction was announced on June 12.

Scale AI provides labeled data for training and improving artificial intelligence (AI) models. Founded in 2016, the startup has received support from over 100 investors and is a supplier for popular AI companies including Anthropic, Cohere, and Adept. According to PitchBook data, Scale AI raised $100 million in its Series C funding round in 2019.

Reportedly, another company reducing its contracts with Scale AI is Google. According to Reuters, this move is due to concerns that the deal could give Meta insights into competitors' AI developments.

A spokesperson for OpenAI told Bloomberg that the company has been gradually reducing its contracts with Scale AI over the past year, seeking more specialized data to meet its AI model needs. Scale AI accounts for only a small portion of OpenAI's data requirements.

Scale AI's interim CEO Jason Droege stated in a statement regarding the deal that the startup "is undoubtedly still an independent company," adding, "Our commitment to protecting customer data has not changed."

OpenAI is now betting on other data suppliers to support its operations, including new entrants in the field like Mercor.

According to Bloomberg, Scale AI initially hired "a large number of contractors" in recent years to label images and text for early AI systems. Later, the company began hiring more educated contractors to assist in developing complex AI models.

Related: Elon Musk's AI company xAI faces lawsuit over air pollution at data center

Original article: “Report: OpenAI Cuts Ties with Data Labeler Scale AI Due to New Deal with Meta”

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