Meta is reportedly investing nearly $15 billion for a 49% stake in AI data labeling company Scale AI, a move that includes bringing Scale’s CEO Alexandr Wang to Meta to spearhead a new "superintelligence" lab, as first detailed by The Information. The deal aims to accelerate Meta's AGI ambitions amid perceived setbacks in the competitive AI field.
- Playing catch-up: The decision to bring Wang and his team into Meta unfolds as CEO Mark Zuckerberg is reportedly dismayed by the company's traction in the AI arena. Meta has encountered challenges with recent model releases, including a tepid response to its Llama 4 series and the reported shelving of its more ambitious "Behemoth" model due to performance worries.
- Valuation sensation: Scale AI, previously valued at nearly $14 billion last spring, has become a pivotal behind-the-scenes player, providing essential labeled data for training advanced AI models to clients like Microsoft and OpenAI. This new backing from Meta reportedly catapults Scale AI’s valuation to a staggering $28 billion post-money.
- Strategic stake, not sale: Meta is taking a non-controlling 49% interest rather than an outright acquisition, a structure some observers suggest could help navigate potential antitrust scrutiny. This approach echoes tactics where tech giants invest heavily in AI startups and recruit top talent, such as Microsoft’s deal with Inflection AI or Google's arrangements with Anthropic.
- Cash for data: The Information’s reporting indicates the $14.8 billion from Meta will primarily go to Scale AI’s existing shareholders. Further context from Semafor suggests a large portion of Meta’s commitment is effectively an advance payment for future data collection work from Scale, highlighting the intense demand for high-quality training data in the AGI quest.
- Also on our radar: Scale AI is also deepening its ties with the U.S. military, inking a multimillion-dollar AI agent deal with the Department of Defense. Meanwhile, Meta's own AI assistant recently surpassed 1 billion monthly active users, and the company previously collaborated with Scale AI on a specialized "Defense Llama" model.
The bottom line: With Zuckerberg personally driving recruitment for the new AGI-focused team, Meta's ambition is stark: to not just compete, but to dominate the next AI era. This hefty investment and Wang's hiring signal Meta's most aggressive maneuver yet to achieve that goal.
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