Meta Platforms (META, Financial) has reportedly agreed to invest $14.8 billion to acquire a 49% stake in AI startup Scale AI. Founded in 2016, Scale AI specializes in providing annotated data and curated training datasets, crucial for developing advanced AI tools like OpenAI's ChatGPT. The transaction isn't finalized but could significantly benefit investors like Accel, Index Ventures, Founders Fund, and Greenoaks Capital, as well as current and former employees.
As part of the deal, Scale AI CEO Alexandr Wang is expected to join Meta to lead the newly established "Superintelligence Lab." Meta's CEO Mark Zuckerberg has been actively recruiting top AI researchers to strengthen the company's AI capabilities. However, Meta has faced skepticism about its position in the AI race. The company's Llama 4 language model, launched in April, underperformed, raising concerns about its technological leadership. Additionally, Meta postponed the release of its flagship AI model, "Behemoth," due to performance and stability not meeting internal standards.
Meta is also under antitrust scrutiny related to its acquisitions of Instagram and WhatsApp. The potential transaction with Scale AI may be structured to mitigate further regulatory reviews. Scale AI was valued at $13.8 billion in a financing round last spring, with projected 2024 revenue around $870 million. Its clientele includes tech giants like OpenAI, Microsoft (MSFT), Meta, and Cisco (CSCO).
