Unlike an acquisition or a transaction that would give Meta a controlling stake, the deal does not require a review by U.S. antitrust regulators. However, they could probe the deal if they believe it was structured to avoid those requirements or harm competition.
The deal appeared to be structured to avoid potential pitfalls, such as cutting off competitors' access to Scale's services or giving Meta an inside view into rivals' operations - though Reuters exclusively reported on Friday that Alphabet's
GOOG Google has decided to sever ties with Scale in light of Meta's stake, and other customers are looking at taking a step back.
In a statement, a Scale AI spokesperson said its business, which spans work with major companies and governments, remains strong, as it is committed to protecting customer data. The company declined to comment on specifics with Google.
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