11:42 AM EDT, 06/16/2025 (MT Newswires) -- (Updates with response from Google ( GOOG ) in the sixth paragraph.)

Alphabet's (GOOG, GOOGL) Google ( GOOG ) is planning to sever ties with Scale AI, where it is the largest customer, following Meta Platforms' ( META ) move to acquire a 49% stake in the company, Reuters reported Friday, citing five sources familiar with the matter.

The search giant had planned to pay Scale AI about $200 million this year for the human-labeled training data that are essential in the development of artificial intelligence models, according to the report.

A Scale AI spokesperson said its business continues to be strong, but the company didn't comment on specifics with Google ( GOOG ), Reuters reported.

Microsoft ( MSFT ) and Elon Musk's xAI, which are also Scale AI customers, are also looking to back away, the report said.

Microsoft ( MSFT )-backed OpenAI decided to pull back several months ago, Reuters reported, citing sources familiar with the matter. OpenAI's chief financial officer said Friday the company will continue to work with Scale AI, among its many data vendors, according to the report.

Google ( GOOG ) declined to comment when contacted by MT Newswires, while Scale AI, Microsoft ( MSFT ), OpenAI and xAI didn't immediately respond to requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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