Meta Makes Major AI Investment
Meta has completed a $14.3 billion investment in Scale AI, a startup that provides data labeling and model evaluation services for AI training. This deal values Scale AI at $29 billion. As part of the agreement, Scale AI’s founder and CEO, Alexandr Wang, will be joining Meta to lead its new ‘Superintelligence lab’.
The investment represents Meta’s second-largest acquisition after its $19 billion purchase of WhatsApp. Meta will hold a 49% stake in Scale AI but will have limited control over its operations. This structure was reportedly chosen to avoid regulatory scrutiny.
The move comes as Meta CEO Mark Zuckerberg has been personally overseeing the recruitment of a team to develop AI with superintelligence capabilities. Zuckerberg has been inviting potential recruits to his home and offering significant compensation packages. Wang will be bringing some Scale AI colleagues with him to Meta to work on artificial intelligence projects.
In a note to Scale AI employees, Wang explained that his departure was the ‘cost’ of this significant opportunity. While stepping down as CEO, Wang will remain on Scale’s Board of Directors. Jason Droege, currently the Chief Strategy Officer at Scale AI, will take over as the new CEO.
This development is significant for Meta as it continues to push the boundaries of AI development. The creation of the ‘Superintelligence lab’ suggests Meta is aiming to create AI systems with capabilities far beyond current technology.
