ChatGPT-maker OpenAI joins Google, Microsoft in ‘cutting ties' with ScaleAI after Mark Zuckerberg paid it billions
OpenAI
, the developer of ChatGPT, is in the process of phasing out its data-labeling work with startup Scale AI, a report has claimed. This decision comes just days after Facebook parent company
Meta
announced a multi-billion dollar investment in
Scale AI
and hired its founder, signaling new uncertainty for Scale's business.
According to a report by Fortune, an OpenAI spokesperson said that Scale AI accounted for only a small fraction of OpenAI's overall data needs, adding that the ChatGPT maker was already in the process of reducing its reliance on Scale before Meta, a direct competitor to OpenAI, acquired a 49% stake in the firm.
It is to be noted that OpenAI's CFO said that the company scaled down its reliance months ago but will continue working with Scale as one of its many vendors. OpenAI had reportedly been seeking other providers for more specialised data crucial for training increasingly advanced artificial intelligence (AI) models.
Meta's $14.3 billion deal with ScaleAI
Meta's substantial investment of $14.3 billion in Scale AI is part of a broader strategy to bolster its own AI capabilities. As part of the deal, Scale AI's CEO,
Alexandr Wang
, is transitioning to Meta to lead a new "superintelligence" unit focused on developing more powerful, hypothetical forms of AI software. Other Scale employees are also expected to join Wang at Meta.
Founded in 2016, Scale AI has been a prominent provider of data labeling services essential for building AI models, with a client roster that notably included
Google
,
Microsoft
and
Elon Musk's xAI
.
Recently, a report claimed that these companies are already moving to cut ties with Scale AI, citing concerns over potential conflicts of interest. They say that the social media giant may gain insights into their proprietary AI development efforts.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
37 minutes ago
- Mint
Pope Leo XIV flags AI impact on kids intellectual and spiritual development
ROME (AP) — Pope Leo XIV warned Friday that artificial intelligence could negatively impact the intellectual, neurological and spiritual development of young people as he pressed one of the priorities of his young pontificate. History's first American pope sent a message to a conference of AI and ethics, part of which was taking place in the Vatican in a sign of the Holy See's concern for the new technologies and what they mean for humanity. In the message, Leo said any further development of AI must be evaluated according to the 'superior ethical criterion' of the need to safeguard the dignity of each human being while respecting the diversity of the world's population. He warned specifically that new generations are most at risk given they have never had such quick access to information. 'All of us, I am sure, are concerned for children and young people, and the possible consequences of the use of AI on their intellectual and neurological development,' he said in the message. 'Society's well-being depends upon their being given the ability to develop their God-given gifts and capabilities,' and not allow them to confuse mere access to data with intelligence. 'In the end, authentic wisdom has more to do with recognizing the true meaning of life, than with the availability of data,' he said. Leo, who was elected in May after the death of Pope Francis, has identified AI as one of the most critical matters facing humanity, saying it poses challenges to defending human dignity, justice and labor. He has explained his concern for AI by invoking his namesake, Pope Leo XIII. That Leo was pope during the dawn of the Industrial Revolution and made the plight of workers, and the need to guarantee their rights and dignity, a key priority. Toward the end of his pontificate, Francis became increasingly vocal about the threats to humanity posed by AI and called for an international treaty to regulate it. Francis said politicians must take the lead in making sure AI remains human-centric, so that decisions about when to use weapons or even less-lethal tools always remain made by humans and not machines.
Time of India
38 minutes ago
- Time of India
MakeMyTrip's record raise; Zuck goes talent shopping
MakeMyTrip's record raise; Zuck goes talent shopping Also in the letter: What's the news: The fundraise marks the largest ever by a listed Indian new-age company. On Tuesday, MakeMyTrip disclosed in a regulatory filing that it is raising $3 billion to buy back shares from Group. MakeMyTrip cofounders Deep Kalra and Rajesh Magow currently hold 4.6% of the company's voting rights. Domestic control: Other major raises: Paytm raised $2.5 billion during its IPO in 2021. Through its public issue, Zomato (now Eternal) raised $1.25 billion and followed this with a $1 billion raise via a qualified institutional placement (QIP) in November 2024. Swiggy raised $1.2 billion from the public markets in its public issue in 2024 Ola Electric raised $740 million through its IPO in August last year. Also Read: Elevation Capital sells Ixigo shares worth Rs 97.4 crore; Schroder buys stake Numbers game: Elevation Capital has sold 53.9 lakh shares for Rs 97.4 crore, pricing them at Rs 180 apiece. In parallel, global investor Schroder International Selection Fund picked up shares worth Rs 96.9 crore in the company. This comes after Elevation sold 21.5 lakh shares in Ixigo for Rs 38.27 crore in May. As of March 31, Elevation held a 14% stake in Ixigo. That has now come down to 12%. The early-stage investor had originally put in Rs 63.1 crore across multiple tranches. Mark Zuckerberg made abortive attempt to buy ex-OpenAI executive Ilya Sutskever's AI startup: Report Driving the news: High-stakes game: Zuckerberg is spearheading an ambitious effort to build a 'superintelligence' team focused on developing artificial general intelligence (AGI), the elusive frontier where AI not only matches but surpasses human capabilities. Inside Meta, there is growing frustration with the sluggish progress of its current efforts, particularly the limitations of the Llama 4 models. Eager not to be left behind, Zuckerberg is setting his sights on outpacing OpenAI and Google in the AGI race. Tell me more: Also Read: Swiggy pilots travel and lifestyle concierge app Crew Details: What's the significance: Background: Krutrim eyes AI growth with BharatSah'AI'yak acquisition Tell me more: Why it matters? Also Read: Zoom out: Internal challenges: YouTube Shorts has hit 200 billion daily views: CEO Neal Mohan Numberwise: More details: At the 2025 Cannes Lions Festival, Mohan added that people now watch over 1 billion hours of YouTube on their TVs every day. In May, YouTube was the most-watched streaming platform in the US for the fourth consecutive month, topping Nielsen's The Gauge report. Future outlook: Also Read: MakeMyTrip has raised $3.1 billion in the largest fundraise by a listed Indian new-age company. This and more in today's ETtech Top 5.■ Swiggy's latest pilot■ Krutrim's latest acquisition■ YouTube Shorts' monster growthMakeMyTrip raises $3.1 billion in landmark deal; to slash Chinese firm stake to 20%Online travel platform MakeMyTrip has raised $3.1 billion through a mix of equity and debt, its banker, Morgan Stanley, confirmed on faced criticism last month over its sizable Chinese shareholding, after EaseMyTrip founder Nishant Pitti accused the platform of risking the travel data of Indian Army personnel. Following this buyback, stake will fall from 45% to around 20%. Its board representation will also shrink from five directors to Bajpai (R), MD and group CEO, Ixigo, and Rajnish Kumar (L), co-CEO, IxigoVenture fund Elevation Capital has offloaded shares of Le Travenues Technology, the parent company of travel platform Ixigo, for a second time in a month, pocketing a 25x return on its Zuckerberg, CEO, MetaMeta's $14.2 billion recent investment in Scale AI, and roping in its CEO Alexandr Wang, appears to be just the beginning. Mark Zuckerberg seems to be on a man on a mission : to recruit top AI talent, and reports suggest he made a move for one of the sector's most-talked-about to CNBC, Zuckerberg tried to acquire Safe Superintelligence, the $32 billion startup founded by former OpenAI cofounder Ilya Sutskever. The talks didn't go far, with Sutskever reportedly turning him down. Meta then shifted focus to poaching CEO Daniel Gross for its AI Meta CEO is assembling a handpicked team of 50 researchers, including a new head of AI, and has held private meetings with potential hires at his homes. Alongside Gross, Meta is also bringing in former GitHub CEO Nat Friedman to under Altman recently stated on a podcast that Zuckerberg has offered $100 million bonuses to attract talent, but so far, with little has ventured into a new category with the pilot launch of its travel and lifestyle concierge app, app blends human concierges with generative AI to help users plan trips, offering more than just itinerary year, ahead of its IPO, Swiggy tested a similar service, Rare Life, a personalised concierge service for exclusive experiences. That experiment was short-lived, as the company decided to focus on broader lifestyle offerings is part of Swiggy's latest push beyond food delivery, dining out, and quick commerce. In January, it launched Pyng, a professional services marketplace This signals a departure from Swiggy's earlier 'superapp' strategy. Instead of integrating all services under one platform, Swiggy has started offering standalone apps. Instamart, its quick commerce unit, got a dedicated app earlier this May, the company shut down its parcel delivery service, Genie , opting instead to focus on Bolt, its rapid food delivery feature now available in 500 cities. As food delivery growth tapers off, Swiggy and rival Zomato are betting on 10-minute orders to regain Aggarwal, founder, KrutrimOla's AI division, Krutrim, has acquired BharatSah'AI'yak , an AI platform developed by governance consultancy move comes as Krutrim seeks to expand its presence in government-led digital initiatives through its proprietary AI stack. As part of the agreement, Krutrim has also onboarded Samagra's core AI has been employed in projects spanning education, agriculture, and citizen services. It will now be integrated with Krutrim's in-house large language models (LLMs), cloud infrastructure, and agentic AI assistant platform, February, Ola founder Bhavish Aggarwal announced an investment of Rs 2,000 crore in Krutrim , with plans to increase it to Rs 10,000 crore by next has recently faced internal turbulence , including several senior-level departures and criticism following the alleged suicide of an employee, with claims of a toxic work Mohan, CEO, YouTubeYouTube Shorts now commands around 200 billion daily views , according to CEO Neal marks a dramatic leap from March 2024, when YouTube said Shorts was attracting around 70 billion daily views. In just one year, daily viewership has surged by nearly 186%.As Shorts continues to gain traction, YouTube plans to strengthen support for creators by rolling out more tools. Mohan announced that Veo 3, the latest version of Google DeepMind's video generation model, will launch on the platform later this summer.
Mint
38 minutes ago
- Mint
Air India bookings down 20 pc; fares dip up to 15 pc after Dreamliner crash
Air India flight bookings have dipped by around 20 per cent on international as well as domestic routes, while average fares have dropped by 8 to 15 oer cent as an effect of the Ahmedabad plane crash last week, Indian Association of Tour Operators (IATO) President Ravi Gosain said on Friday as per a report. The Air India plane crash on June 12 shocked the nation as AI-171 carrying 242 passengers and crew members crashed in Ahmedabad. All on board expect one died on the spot, with the total death toll being pegged at over 270 considering that the Boeing 787 Dreamliner crashed into a residential building in the Meghaninagar area of the city shortly after takeoff. An Air India spokesperson did not respond to a query seeking comments from the airline, PTI reported. "Following the unfortunate incident involving Air India, we have observed a temporary decline in bookings, particularly on international sectors. While the exact percentage varies by route, our estimates indicate a dip of around 18–22 per cent on international bookings and a 10–12 per cent decline domestically in the immediate aftermath. However, this appears to be a short-term sentiment-driven reaction, as confidence typically stabilizes over time," Gosain was quoted as saying by PTI. IATO president Ravi Gosain also informed that a moderate fare adjustment had been observed across key routes of Air India, dropping by up to 12 per cent on domestic routes and 15 per cent on international ones. "On an average, ticket prices have reduced by 8–12 per cent on domestic sectors where the airline competes directly with low cost carriers like IndiGo and Akasa. On international routes, especially to Europe and Southeast Asia, fares have seen a drop of 10–15 per cent, depending on route occupancy and competition. These reductions are mix of promotional strategies and yield correction due to lowered demand," Gosain told the news agency. Asked whether there have been cancellations by travellers for Air India flights booked via tour operators, the IATO president said, "Yes, we have witnessed a noticeable rise in cancellations, particularly from corporate and high-end leisure travellers who prefer to switch to alternative carriers". He informed that the increase in cancellations was 15–18 per cent internationally, and 8–10 per cent domestically over the past week. However, this trend may normalise in the coming days as no systemic safety issue has been reported and authorities like DGCA reaffirm Air India's compliance with international safety standards. Federation of Associations in Indian Tourism & Hospitality (FAITH) General Secretary Rajiv Mehra also shared that an up to 20 per cent decline in bookings has been observed for Air India flights while the fares have turned cheaper by about 10 per cent on certain sectors where there is high competition with other carriers. "As far as Air India is concerned, fares are around 10 per cent cheaper for both domestic and international routes than other airlines on certain sectors. Besides, there is a 15-20 per cent decline in new bookings for Air India flights on domestic as well as international routes after the crash," Mehra said. He asserted that all airlines have to pull up their socks as far as aircraft maintenance is concerned, to ensure passengers.
