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Meta-Scale AI deal raises client conflict risk with Google, Microsoft

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Several clients of artificial intelligence (AI) startup Scale AI, including its biggest client, Google, are planning to end their relationship with the company after Meta acquired a 49% stake, according to Reuters.

The deal, which values the data-labelling startup at $29 billion, has sparked concerns among other major customers as well, including Microsoft, ChatGPT-maker OpenAI, and Elon Musk’s AI startup, xAI.

Why are tech firms worried?

Scale AI provides data services to many AI labs. With Meta now a significant investor, it could gain an inside…

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