The decision to terminate the contract was part of Google's ongoing effort to evaluate and adjust its supplier partnerships to ensure efficiency. The quality rating work will be transitioned to new suppliers. Appen, which employs 1 million contractors in 170 countries, had no prior knowledge of Google's decision. The company reported a decrease in Global Services Q4 2023 revenue, but an increase in New Markets, including China.
Key takeaways:
- Google has ended its contract with Australian data company Appen, which was instrumental in training Google's large language model AI tools and supporting its quality ratings for Search.
- The termination of the contract with Appen, which accounted for about a third of Appen's business revenue, takes effect from March 19. Appen also supports and trains AI models for other tech giants like Microsoft, Nvidia, Meta, Apple, Adobe, and Amazon.
- Appen employs 1 million skilled contractors globally who label data to improve AI systems used by large tech companies. Despite a decrease in Global Services revenue in Q4 2023, Appen reported growth in New Markets, including a record quarterly revenue of $11.1 million in China.
- Google's decision to end the contract is part of its ongoing effort to evaluate and adjust its supplier partnerships across Alphabet for efficiency. The quality rating work will be transitioned to new suppliers, suggesting that Appen is one of several contractors affected by Google's review to find savings and efficiencies.