OpenAI is winding down its work with Scale AI, whose founder is...
OpenAI has been gradually reducing its collaboration with Scale AI, a prominent startup in the field of artificial intelligence. Scale AI recently attracted a substantial investment of billions of dollars from Meta. The founder of Scale AI has decided to depart from the company and take on a new role at Meta to oversee their AI initiatives.
Impact on Tech Industry
Scale AI is renowned for its contributions in assisting major technology firms, including OpenAI, in preparing and refining datasets essential for training advanced AI models. However, OpenAI has been gradually disengaging from its partnership with Scale AI over the past six to twelve months, as stated by a spokesperson from OpenAI. The decision to wind down their collaboration with Scale AI was not directly linked to the recent partnership with Meta.
Google's Response
Google is also reportedly severing ties with Scale AI subsequent to their deal with Meta, according to a report from Reuters. On the other hand, Google chose not to provide any comments on this matter. Reports from Bloomberg and Reuters have highlighted OpenAI's gradual disengagement from Scale AI. Scale AI has not yet responded to CNBC's request for comments.
Transition at Scale AI
Following Meta's significant investment of $14.3 billion in Scale AI, the latter will have a substantial 49% ownership stake in the startup. However, Meta will not hold any voting authority within Scale AI, according to a spokesperson from the company. In a recent internal memo, Scale AI's founder, Alexandr Wang, announced his departure to Meta, along with a select group of employees who will be transitioning as part of the agreement. Additionally, Jason Droege, the chief strategy officer, has been promoted to the CEO position at Scale AI.
Competition in AI Development
Meta's substantial investment in Scale AI, particularly the recruitment of Wang, is viewed as CEO Mark Zuckerberg's strategic move to reinforce the company's AI initiatives amidst intense competition from entities like OpenAI and Google's parent company, Alphabet. Meta has made notable efforts to attract talent, as disclosed by OpenAI CEO Sam Altman, who revealed that Meta attempted to recruit OpenAI staff by offering lucrative signing bonuses reaching up to $100 million with substantial annual compensation packages.
Meta's AI Investments
Meta has been heavily investing billions of dollars into AI technologies in recent years. However, Zuckerberg's dissatisfaction with the company's progress, particularly in the reception of its latest Llama AI models, has been a significant concern. Scale AI has assured its clients that Meta's investment and Wang's transition will not impact its services or compromise confidential business information.
