Meta is reportedly in advanced talks to invest over $10 billion in Scale AI, a prominent data-labeling startup that supports AI development. This could become one of the largest private investments in artificial intelligence, further cementing Meta’s long-term commitment to leading in the AI race.
Founded in 2016 by Alexandr Wang, Scale AI specializes in labeling and structuring data, an essential process for training large language models and AI systems. Its client list includes major players like OpenAI, Microsoft, and even the U.S. Department of Defense. The company generated around $870 million in revenue in 2024 and is projecting up to $2 billion for 2025.
Meta has previously participated in Scale AI’s funding. It joined the company’s Series F round, which valued the startup at $13.8 billion. The new deal could push Scale’s valuation to around $25 billion, if final terms are agreed upon. While the negotiations are ongoing, sources say the investment would likely be structured as a tender offer, enabling Meta to buy existing shares from current investors and employees.
So why does Meta want Scale AI?
The answer lies in data. Meta has built its own AI models, like Llama 3, and recently launched Meta AI, its chatbot, across Facebook, Instagram, and WhatsApp. But even advanced models need clean, well-labeled data to improve. That’s where Scale AI excels. Gaining privileged access to such a rich data pipeline could give Meta a competitive edge over rivals like OpenAI, Google, and Anthropic.
This move mirrors recent trends. Microsoft has backed OpenAI. Amazon and Google have invested billions into Anthropic. By potentially investing in Scale AI, Meta secures a key part of the AI supply chain—training data—without needing to fully acquire a foundation model company.
If the deal closes, it would mark Meta’s largest external AI investment to date. It also signals a broader shift in Meta’s strategy: working with specialized partners to reinforce its AI infrastructure, rather than relying solely on in-house efforts.
The deal remains unofficial, and final terms may still change. But the implications are clear. Meta sees AI not just as a tool, but as the foundation of its future. And it’s ready to spend big to stay ahead.
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