Uber expands AI data labeling services after Meta's Scale AI deal

Ride-hailing giant Uber is aggressively promoting its data labeling services to AI developers in the wake of Meta's $14.8 billion acquisition of a 49% stake in Scale AI. The deal has reportedly unsettled some of Scale's existing clients, including OpenAI and Google, creating an opportunity for Uber to position itself as an alternative provider.

• Uber's AI Expansion: Megha Yethadka, an Uber executive, revealed in an interview with Fortune that the company is expanding its AI business by offering large-scale data sets and tools to organizations developing in-house AI models. This includes licensing Uber’s data labeling platform and related technologies to help customers build AI agents.

• Core Business Alignment: Yethadka emphasized that Uber's core strength lies in being a platform for flexible on-demand work, which naturally extends to digital tasks like data labeling. The company first unveiled its data labeling platform last year, with Bloomberg reporting in November that Uber was offering "coders for hire" for AI projects.

• Market Potential: Data labeling, the process of tagging raw data to make it understandable for AI models, is a growing industry. Research projects the market could surpass $17 billion by 2030. Uber's recent announcement highlights its ambition to provide "customized data solutions" for AI development.

Meta's Move and Industry Reactions

Meta's investment in Scale AI has stirred the competitive landscape. According to Bloomberg, OpenAI is phasing out its use of Scale's services due to concerns over Meta's involvement. This shift underscores the intense competition among tech giants to control AI infrastructure.

• Big Tech's AI Spending: Companies like Meta, Google, and Apple are investing heavily in AI. CNBC reports that tech megacaps are expected to spend over $300 billion on AI this year alone.