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


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…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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