Meta Invests $14 Billion in Scale AI, Gains Major Influence in AI Sector
In a strategic move to bolster its artificial intelligence capabilities, Meta has invested a staggering $14 billion in Scale AI, a leading data-labeling company, effectively doubling Scale AI’s valuation to $29 billion. This landmark deal grants Meta a 49% stake in the startup, positioning the social media giant to wield significant influence in the fast-evolving AI sector.
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Despite the sizeable investment, Scale AI continues to operate as an independent company, with no changes to its board of directors. However, the partnership notably strengthens Meta’s hand in steering Scale AI’s business decisions. Alexander Wang, the founder and CEO of Scale AI, remains on the board but now works closely with Meta, which holds substantial sway over the company’s direction.
The investment was structured in a way that suggests Meta’s near-complete acquisition of Scale AI, but it instead ensured that Scale AI’s employees also benefited generously. A major part of the deal was allocated to buy out shares from employees, providing them with significant payouts while allowing them to retain equity in the growing company. This arrangement is reportedly the brainchild of Wang himself, reflecting his commitment to rewarding his team for their contributions.
Meta’s sizable stake in Scale AI underscores the company’s urgency to accelerate its AI advancements amid increasing competition in the tech landscape. By partnering with a key player in data annotation — a critical component in AI training — Meta aims to sharpen its edge and maintain leadership in artificial intelligence development.
As AI continues to reshape industries globally, Meta’s bold investment signals a major push to remain at the forefront of technological innovation.
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