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Meta Closes $14.3 Billion Stake in Scale AI, Brings CEO to Head Superintelligence Effort

Prime Highlights

  • Meta has bought a 49% stake in Scale AI for $14.3 billion, giving the company a valuation of $29 billion.
  • 28-year-old Scale AI CEO Alexandr Wang will become part of Meta to lead its new superintelligence unit.

Key Facts

  • This is Meta’s second-largest acquisition after WhatsApp’s $19 billion purchase.
  • Scale AI will continue independently by interim CEO Jason Droege, with Wang remaining on the board.
  • The transaction could be subject to regulatory approval and influence Scale’s collaboration with competing AI companies.

Key Background

Meta Platforms is going all out in the artificial intelligence competition by buying a nearly 50% interest in Scale AI, a rapidly expanding data-labeling company central to training sophisticated AI systems. The $14.3 billion investment not only values Scale AI at $29 billion but also provides Meta direct entry into Alexandr Wang, the 28-year-old founder and CEO of the company, who will now head Meta’s new “superintelligence” unit.

Scale AI, established in 2016, is a key pillar of the AI ecosystem with its high-quality labeled data that is used to train models for large clients such as OpenAI, Google, and Microsoft. The company had earlier raised funding from large supporters such as Amazon, Nvidia, and Index Ventures and was most recently valued at $14 billion in 2024. Scale is projected to have revenues of $2 billion in 2025 and is seen as a key infrastructure provider to the AI industry.

Meta’s action looks strategic and talent-driven. While not snagging a board seat at Scale, Meta’s major investment locks up the leadership of Wang, who will take with him a handpicked batch of Scale employees to concentrate on frontier AI projects at Meta. This follows Meta as it tries to catch up to the competition in the superintelligent AI and general AI domain after facing trouble deploying its LLaMA models and recent employee losses.

But the transaction adds complexity. Scale AI will remain autonomous, now under the temporary management of Jason Droege, a former Uber executive. Meanwhile, the transaction can be expected to draw regulatory attention, particularly since Meta’s earlier acquisitions—such as Instagram and WhatsApp—are still in the crosshairs. Further, Scale’s current partnerships with rival tech behemoths may become strained as Meta becomes more influential over the company’s operations and potentially sensitive information.

Overall, the transaction highlights Meta’s ambitious AI plans and willingness to place enormous financial wagers—not only on technology, but on acquiring the top talent to spearhead the next generation of innovation.