Meta, the parent company of Facebook and Instagram, is reportedly in advanced talks to invest around $10 billion in Scale AI, a leading data labeling startup. This potential investment would mark Meta's largest external AI investment to date and one of the biggest private company funding events in history.
Scale AI, founded in 2016 by CEO Alexandr Wang, specializes in data labeling services for machine learning models. The company has generated $870 million in revenue in 2024 and expects to double that figure to $2 billion in 2025. Scale AI's clients include Microsoft, OpenAI, and the US Department of Defense.
The potential investment in Scale AI signals a shift in Meta's AI strategy, as the company moves beyond its historical focus on in-house research and open-source development. Meta is now exploring significant external investments, mirroring moves by tech giants like Microsoft and Amazon.
Meta and Scale AI already collaborate on "Defense Llama," a military-focused version of Meta's Llama AI model. Scale AI also has contracts with the US Department of Defense to develop AI agent technology. The potential investment could accelerate AI technology development across sectors, including national security.
The deal would align with Meta CEO Mark Zuckerberg's commitment to making AI a central focus, with plans to allocate up to $65 billion for AI-related projects in 2025. If finalized, the investment would likely bolster Scale AI's position in the AI ecosystem and reshape competitive dynamics within the industry.
