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Alphabets Google (NASDAQ:GOOGL) is cutting ties with Scale AI following Metas (NASDAQ:META) acquisition of a 49% stake in the data-labeling startup, according to five Reuters sources. Google had planned to pay Scale

As part of the deal, Scale AI’s CEO, Wang, will take a top position leading Meta’s AI efforts. Meta is fighting the perception that it may have fallen behind in the AI race after its initial set of Llama 4 large language models released in April fell short of performance expectations.