Tuesday, June 17, 2025

Meta Acquires Scale AI in $14.3 Billion Deal, Appoints Alexandr Wang as AI Chief

-

Meta Platforms Inc. has finalized a multibillion-dollar investment in Scale AI and appointed the startup’s CEO, Alexandr Wang, to its artificial intelligence division—an unconventional move signaling Meta’s intensified push to catch up in the AI race.

While Meta did not disclose terms, the investment totals $14.3 billion, according to a source familiar with the matter. The deal values Scale at over $29 billion, including new capital raised, as confirmed in a blog post by Scale. As part of the deal, Meta will acquire a 49% stake in the company through nonvoting shares.

Wang will join Meta’s “superintelligence” unit, focused on achieving human-level AI capabilities—also known as artificial general intelligence (AGI)—while continuing to serve on Scale’s board.

The investment follows Meta CEO Mark Zuckerberg’s renewed focus on AI in 2024, after expressing disappointment over the reception of its latest model, Llama 4. Since then, Zuckerberg has personally led recruiting efforts for Meta’s AI unit, hosting top researchers at his homes and restructuring Meta’s offices to embed the new team near his own workspace. The company has aggressively pursued AI talent, including from Google and startups like Sesame AI.

Meta’s move mirrors strategies by rivals like Amazon, Microsoft, and Google, who have made strategic investments in AI startups to access talent and technology—without triggering major regulatory scrutiny. Notably, Meta is currently embroiled in antitrust litigation with the U.S. Federal Trade Commission.

Unlike model-focused startups, Scale AI, founded in 2016, provides the data infrastructure and tooling that companies like Meta and OpenAI use to train and optimize their AI systems. It also develops tailored AI solutions for enterprise and government clients.

The partnership could help Meta accelerate its AI roadmap and strengthen its positioning in defense tech. Wang, 28, is known for his strong political connections and active lobbying efforts in Washington.

Scale has also demonstrated impressive financial momentum, generating $870 million in revenue in 2024 and projecting $2 billion in 2025. The company was previously valued at $14 billion in a 2023 funding round.

Quick Take

Meta’s investment in Scale AI isn’t just a funding move—it’s a calculated strategy to strengthen its AI infrastructure and close the gap with rivals like OpenAI and Google. By bringing in Alexandr Wang and tapping into Scale’s government ties and data expertise, Meta gains both technical leverage and political positioning. The nonvoting stake also smartly sidesteps regulatory risk while securing deep integration.

FOLLOW US

0FansLike
0FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories