Meta, the parent company of Facebook, has invested $14.3 billion to acquire a 49% stake in Scale AI, valuing the data-labeling startup at $29 billion. As part of the deal, Scale’s 28-year-old CEO, Alexandr Wang, will join Meta to lead its new superintelligence unit and shape its artificial intelligence strategy.
Wang, who co-founded Scale after dropping out of MIT, is known as a rising star in Silicon Valley. He built Scale into a major AI data provider, securing top clients including the U.S. federal government.
Meta’s CEO Mark Zuckerberg hopes Wang’s business expertise will boost Meta’s AI efforts, which have faced challenges like delayed open-source AI projects and staff departures.
Scale, founded in 2016, specializes in labeling data essential for training AI models such as ChatGPT. The company employs platforms like Remotasks to manage gig workers who annotate data. Scale’s chief strategy officer, Jason Droege, will serve as interim CEO while Wang transitions to Meta but remains on Scale’s board.
Some AI labs that use Scale’s services may reconsider their partnerships due to concerns over Meta gaining insights into competitors’ data strategies. Despite this, early investors like Accel and Index Ventures benefit by cashing out half their stakes.
This $14.3 billion investment ranks as Meta’s second-largest after its $19 billion WhatsApp acquisition. Meta will not take a board seat at Scale. A few Scale employees will move to Meta alongside Wang.
The deal underscores Meta’s commitment to competing in AI, aiming to catch up with rivals like Google and OpenAI by leveraging Wang’s leadership and Scale’s data capabilities.
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