Meta has finalized a significant investment in Scale AI, valuing the startup at over $29 billion. The investment, worth $14.3 billion, marks Meta's second-largest investment ever, after the $19 billion buyout of WhatsApp. Scale AI provides vast amounts of accurately labeled data, crucial for training sophisticated AI tools like OpenAI's ChatGPT.
The company works with businesses, governments, and labs to exploit the benefits of artificial intelligence. As part of the deal, Scale AI CEO Alexandr Wang will join Meta's new "superintelligence" unit focused on achieving artificial general intelligence (AGI). Jason Droege, Scale's chief strategy officer, will take over as interim CEO of Scale AI.
Meta CEO Mark Zuckerberg is betting on Wang's business acumen to revamp Meta's AI efforts, rather than relying on research scientists. This move gives Zuckerberg an edge over rivals, as many labs have hired Scale for data services, potentially providing insight into their data strategies.
Scale AI was previously valued at nearly $14 billion in a May 2024 funding round, where it raised $1 billion from backers including Nvidia, Amazon, and Meta itself. This latest investment solidifies Meta's commitment to advancing its AI capabilities and potentially gaining a competitive edge in the tech industry.
With this strategic move, Meta is positioning itself to leverage Scale AI's expertise in data labeling and AI development to drive innovation and growth. The investment is expected to have significant implications for the tech industry, as Meta and Scale AI work together to push the boundaries of AI research and development.
