Meta Invests $14.3 Billion in Scale AI to Boost Its Artificial Intelligence Plans

Meta, the company that owns Facebook and WhatsApp, has invested $14.3 billion in a startup called Scale AI, which specializes in labeling data for artificial intelligence (AI). As part of this deal, Scale AI’s 28-year-old CEO, Alexandr Wang, will take on an important role in Meta’s AI strategy. The agreement values Scale AI at $29 billion, and a small group of its employees will also move to Meta’s team.

Meta was once known as a leader in open-source AI models, but many of its employees have left the company recently. This has caused delays in releasing new AI models that could compete with products like Google’s Gemini, OpenAI’s ChatGPT, and China’s DeepSeek.

By investing heavily in Scale AI, Meta hopes to improve its AI research and development. Reports suggest that another reason for this deal was to bring Alexandr Wang on board to lead Meta’s new “superintelligence” division, which focuses on advanced AI.

In a public statement, Meta said: “This partnership will help us work more closely with Scale AI to create better data for training AI models. Alexandr Wang will join Meta to work on our superintelligence projects. We will share more details about this team and the people joining it in the next few weeks.”

Meta’s Big Investment in Scale AI

As part of the deal, Meta will own a 49% stake in Scale AI, worth $14.3 billion. However, Meta will not have a seat on Scale AI’s board of directors.

In a message to employees, Scale AI announced that a few of its workers will move to Meta along with Wang. While Wang will stay on Scale AI’s board, the company’s current strategy chief, Jason Droege, will become the new CEO.

Scale AI has about 1,500 employees and provides high-quality labeled data, which is essential for training AI systems like ChatGPT. To handle this work, Scale AI uses platforms like Remotasks and Outlier to hire and manage workers who manually label data.

In May 2024, Scale AI was valued at nearly $14 billion after a funding round that included investments from big tech companies like Nvidia, Amazon, and Meta.

Legal Concerns for Meta

The U.S. Federal Trade Commission (FTC) has sued Meta in the past, claiming that the company illegally bought Instagram and WhatsApp to reduce competition. It is unclear whether this new investment will face regulatory scrutiny from the FTC.

This deal is Meta’s second-largest investment ever, after its $19 billion purchase of WhatsApp in 2014.

Meta’s Push to Strengthen Its AI Technology

Meta is working hard to improve its AI technology as it faces tough competition from other tech companies. CEO Mark Zuckerberg has made AI a top priority for Meta in 2025. However, the company’s latest AI model, Llama, received negative feedback from developers recently.

To strengthen its AI team, Meta is bringing in Alexandr Wang to lead its AI projects, which are crucial for the company’s future growth.

Who Is Alexandr Wang?

Wang was born in Los Alamos, New Mexico, to Chinese immigrant parents who were physicists. He dropped out of the Massachusetts Institute of Technology (MIT) to co-found Scale AI in 2016. He quickly became one of Silicon Valley’s most successful young entrepreneurs, raising money from top investors and becoming a billionaire in his 20s.

Wang has strong connections in the tech industry, including a relationship with OpenAI CEO Sam Altman. He has also worked closely with the U.S. government, making Scale AI a major contractor. His move to Meta shows how important he is in the AI world.

In a message posted on X (formerly Twitter), Wang wrote: “As you may have seen in the news, big opportunities often come with sacrifices. In this case, the sacrifice is me leaving Scale AI. Serving as your CEO has been the greatest honor of my life.”

Potential Risks for Scale AI

Some experts believe this deal might not be entirely good for Scale AI’s reputation. Other AI companies that use Scale AI’s services might worry that Meta could gain access to their private data since Wang will still be on Scale AI’s board. If these companies lose trust in Scale AI, they might stop using its services.