Meta announced on Thursday its plan to invest $14.3 billion in Scale AI, a start-up specializing in data training for artificial intelligence systems. This significant investment is part of Meta’s strategy to strengthen its struggling A.I. division.
As part of the deal, Alexandr Wang, the 28-year-old CEO of Scale AI, will join Meta in a top leadership role within the newly formed Superintelligence lab. Wang, regarded by Meta insiders as a visionary leader, will also bring a team of Scale AI employees to Meta.
This investment represents about 10% of Meta’s 2024 revenue and marks the company’s first major minority investment in an external company. It’s Meta’s second-largest deal after the $19 billion acquisition of WhatsApp about 11 years ago.
Meta is racing to catch up with A.I. competitors like Google, Microsoft, OpenAI, and Anthropic as industry leaders vie for dominance in what they believe will be the most transformative technology of the generation.
“Meta has finalized our strategic partnership and investment in Scale AI,” a Meta spokesperson stated. “As part of this, we will deepen the work we do together producing data for A.I. models, and Alexandr Wang will join Meta to work on our superintelligence efforts.”
The move underscores Meta’s commitment to advancing its A.I. capabilities and competing in the rapidly evolving technology landscape.
