Meta is making its biggest move yet in artificial intelligence by investing $14 billion in Scale AI, a leading startup in data labeling and AI training. The deal gives Meta a 49% stake in the company. This follows the lukewarm response to Meta’s recent Llama AI models.
Meta CEO Mark Zuckerberg also hired Scale AI’s co-founder, Alexandr Wang, to lead a new AI research lab within Meta. Wang brings strong technical skills and business experience. He will join Meta with a team to strengthen its AI capabilities and help close the gap with competitors.
This investment follows a growing trend where tech giants like Google and Microsoft take stakes in AI startups instead of buying them outright. Meta is reportedly trying to avoid regulatory issues during its ongoing antitrust trial by choosing investment over acquisition.
Founded in 2016, Scale AI is a key player in AI, serving companies like OpenAI, Google, and Microsoft. It recently secured a large defense contract with the US Department of Defense. Wang’s reputation as a “wartime CEO” who understands global AI competition makes him a valuable asset.
Wang has called AI competition between the US and China an “AI war” and urged increased computational power. Meta’s move shows Zuckerberg’s readiness to bring outside talent to boost AI progress. With this partnership, Meta aims to improve its AI models and regain a competitive edge.