On June 17, 2025, reports indicated that Alphabet Inc.'s Google, along with Microsoft and Elon Musk's xAI, are planning to end their business relationships with Scale AI. This decision follows Meta Platforms Inc.'s acquisition of a 49% stake in the AI data-labeling startup.
The move suggests that major tech companies are wary of working with a data partner that has a significant ownership stake from a direct competitor. This could lead to a reallocation of AI data labeling contracts to other providers.
For Alphabet, this represents a loss of a business relationship with a prominent AI data services provider. It highlights the intense competition and strategic maneuvering among tech giants in the rapidly evolving artificial intelligence industry.
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