OpenAI is cutting ties with data provider Scale AI after Meta struck a major deal with the startup. The shift comes just days after Meta announced a multi-billion-dollar investment in Scale AI and named CEO Alexandr Wang to a bigger role.
OpenAI told Bloomberg it was already winding down work with Scale before Meta’s announcement. The company said it is hunting for other, more specialized data providers to power its next-gen AI models.
This move flips earlier comments from OpenAI’s CFO Sarah Friar, who had said OpenAI would keep working with Scale. 
The fallout raises serious questions about Scale AI’s core data-labeling business. Reuters also reported that Google is mulling a similar split.
Competitors of Scale AI say they’ve seen a surge of interest from AI firms looking for “neutral” data partners amid the uncertainty.
Scale AI’s general counsel pushed back against claims Meta will get special treatment in their blog post, insisting confidential info from other customers won’t be shared and Wang won’t run day-to-day operations.
Still, it looks like Scale’s top clients are already pulling away, forcing the startup to rethink its future.
Interim CEO Jason Droege said in a separate blog post that Scale plans to “double down” on its AI applications for governments and enterprises.
“We will be doubling down on applications and solutions that make the most meaningful impact for our customers and partners,”
Jason Droege, Scale AI interim CEO, wrote.
