Meta bets nearly $15B on Scale AI, taps Founder Wang for AGI lab

Meta is investing nearly $15 billion for a 49% stake in AI data firm Scale AI, with CEO Mark Zuckerberg aiming to position Meta as a leader in AI.
The investment will boost Scale AI's valuation beyond its previous $15 billion, highlighting the growing importance of AI in tech.
The deal includes a new role for Scale AI's CEO, 28-year-old Alexandr Wang, as detailed by The Information.
Meta's move mirrors similar strategies by Microsoft and Google to secure a competitive edge in AI without full acquisitions.

Meta is reportedly investing nearly $15 billion for a 49% stake in AI data firm Scale AI, a strategic move to accelerate its artificial general intelligence ambitions that would see Scale's CEO Alexandr Wang join Meta to lead a new AGI lab; The Information first detailed the near $15 billion deal terms and Wang's new role, following initial reports of talks from Bloomberg.

Valuation validation: The investment would catapult Scale AI's valuation well past its $13.8 billion from last year to around $28 billion. The Information also reported Meta's cash is slated to go directly to Scale's existing shareholders.

Zuck's AGI gambit: The deal highlights CEO Mark Zuckerberg’s drive to make Meta an AI frontrunner, fueled by perceptions of lagging behind rivals and personal recruitment for a new "superintelligence" group. Meta, whose Llama AI models faced challenges with its delayed "Behemoth" version due to capability concerns, aims for AGI that can match or surpass human intellect.

Dodging the red tape: Opting for a massive stake rather than an outright acquisition mirrors moves by Microsoft with OpenAI and Google/Amazon with Anthropic, potentially helping Meta sidestep intense regulatory battles. Meanwhile, questions arise over Scale AI's future leadership, with The Information noting Chief Strategy Officer Jason Droege is in discussions for CEO.

The upshot: Meta is making an enormous talent and capital play to secure its place in the AI future, potentially redrawing its AI roadmap and significantly altering Scale AI’s independent trajectory.

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Also on the AI radar: Meta isn't just betting on external talent; Zuckerberg earlier announced plans to spend up to $65 billion on AI projects this year. Scale AI, meanwhile, has been deepening its government ties including with the U.S. Department of Defense, and Meta has also reportedly been poaching AI researchers from rivals.