Google is severing ties with AI data-labeling startup Scale AI after its rival, Meta, acquired a 49% stake, valuing Scale at $29 billion. Google, Scale's largest customer, planned to spend $200 million this year on Scale's services crucial for its Gemini AI model. Other tech giants like Microsoft and xAI are also distancing themselves, fearing data exposure to Meta. Scale AI insists its business remains strong, despite the loss of major contracts.

Prepared by Jonathan Pierce and reviewed by editorial team.