Google, Microsoft, Elon Musk's xAI Reportedly Cut Ties With Scale AI After Mark Zuckerberg's Meta Buys Stake

Google is reportedly cutting ties with Scale AI after Meta acquired a 49% stake in the data-labeling startup, according to Benzinga. Google was previously Scale AI’s largest customer, and it is reportedly planning to end its relationship with the company. The tech giant had committed around $200 million for training data in 2024 but is now in talks with competing vendors to shift its workload. Scale AI earned $870 million in 2024, and could suffer further losses as Microsoft and xAI also back away over concerns that Meta might gain insight into competitors’ AI roadmaps. The deal valued Scale AI at $29 billion and caused business losses as CEO Alexandr Wang and other employees prepare to join Meta.