Recently, we mentioned that Meta invested $14.3 billion in Scale AI to take a 49% stake in the company. As a result, Google, Microsoft and xAI are now in the process of ending their business relationships with Scale AI.
Why is this happening?
According to internal sources, Google has reached out to several competitors to Scale AI to offer their services. The main service offered by Scale AI is labelled data that can be used to train artificial intelligence (AI) models.
Additionally, Microsoft and xAI are reportedly in the process of no longer using Scale AI services. OpenAI has also started reducing its use of data from Scale AI over the past few months.
Interestingly, no reason was given as to why the three big tech companies wanted to stop using Scale AI services. It is likely to be an attempt to avoid Meta's perceived advantage in the AI space.
Why did Meta buy Scale AI?
Additionally, Meta is believed to have acquired part of Scale AI because it needed the expertise of the company's staff and to obtain better training data after it was found to be using data stolen via Torrent.
The failure of Behemoth's new AI model development at Meta catalysed the purchase, as Mark Zuckerberg has consistently been willing to acquire competitors if it is found to be profitable for the company.
What are your thoughts on this news? Comment below, and stay tuned for more news like this at TechNave.
COMMENTS