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Giant magnetoresistance in sputtered single films of Cu–Co and Ag–Co heterogeneous alloys is discussed. The films consist of Co‐rich precipitates in a nonferromagnetic matrix. The Ag–Co films have higher Δρ/ρ and Δρ values than the Cu–Co films, possibly due to less Co dissolved in the Ag matrix. Δρ scales inversely with precipitate particle size, implying that Co‐rich clusters ≤20 Å diameter may be most effective for spin dependent scattering. This trend of the data and a phenomenological model suggest that interfacial spin dependent scattering is significantly stronger than the scattering within the Co‐rich particles.