Meta’s multibillion-dollar partnership with Scale AI is showing early signs of strain, just months after the tech giant invested $14.3 billion in the data-labeling startup. The deal, announced in June, saw Scale AI’s CEO Alexandr Wang and several of his senior executives join Meta to spearhead its new unit, Meta Superintelligence Labs (MSL).

However, cracks are already appearing. Ruben Mayer, Scale AI’s former Senior Vice President of GenAI Product and Operations, who followed Wang to Meta, has exited the company after only two months, according to individuals familiar with the development. Mayer, who spent nearly five years at Scale AI, was tasked with overseeing AI data operations during his brief stint at Meta.

Conflicting accounts have emerged regarding his role. Sources claimed Mayer was not directly part of TBD Labs — Meta’s core division responsible for building advanced AI models, which has recruited top talent from OpenAI. But Mayer disputed that narrative, stating he was involved with TBD Labs “from day one” and had been helping to “set up the lab” in various capacities. He emphasized that his time at Meta was positive and that he did not directly report to Wang.

Beyond Mayer’s departure, Meta’s reliance on Scale AI itself appears to be wavering. Insiders revealed that TBD Labs is increasingly working with other data-labeling vendors, including Surge and Mercor, both of which are major competitors to Scale AI.

While it is common for AI labs to engage multiple vendors, the scale of Meta’s investment in Scale AI makes the shift unusual. Some researchers at TBD Labs reportedly believe Surge and Mercor provide higher-quality data compared to Scale AI.

Scale AI originally grew on a crowdsourcing model, relying on large, low-cost workforces to annotate data. As AI systems evolved, however, demand shifted toward more specialized labeling requiring expertise from fields such as medicine, law, and science.

Competitors like Surge and Mercor, which built their businesses on professional, high-paid talent, are now rapidly gaining ground. Scale AI has attempted to close the gap with its Outlier platform, which brings in subject-matter experts, but skepticism remains within the AI research community.

When asked about concerns over data quality, a Meta spokesperson dismissed the claims. Surge and Mercor declined to comment. Scale AI, meanwhile, directed inquiries to its earlier announcement with Meta, highlighting the “expansion of their commercial relationship.”

Yet, the competitive landscape may complicate matters for Scale AI. Shortly after Meta announced its historic investment, both OpenAI and Google cut ties with the company, leaving Meta as its most significant partner. For Meta, diversifying across multiple vendors seems to be a strategic hedge. For Scale AI, however, the stakes are far higher.

Source: Techcrunch