Meta Invests $14.3 Billion in Scale AI, Acquires CEO Alexandr Wang
Meta secures a 49% stake in data-labeling firm Scale AI, which is now valued at $29 billion. Co-founder Alexandr Wang steps down as CEO to join Meta's superintelligence team.
Scale AI confirms a massive investment from Meta that values the data-labeling startup at $29 billion. Reports indicate Meta pays approximately $14.3 billion for a 49% stake in the company, which produces and labels crucial data used to train large language models. As part of this strategic partnership, Meta plans to deepen its data production work with Scale AI to boost its artificial intelligence capabilities.
Co-founder and CEO Alexandr Wang steps down from his leadership role at Scale AI to join Meta and work on its superintelligence efforts. Jason Droege, the current chief strategy officer at Scale AI, steps in as the interim CEO while Wang remains with the startup as a board director. The company emphasizes that it stays an independent entity despite the massive influx of capital.
This deal allows Meta to secure high-quality training data as it competes with AI rivals like Google, OpenAI, and Anthropic. The social media giant faces pressure to catch up in the AI race, especially after losing top talent to other labs last year. Scale AI intends to use the new funds to pay investors and fuel future growth as it continues to hire highly skilled experts to generate frontier AI data.