Meta, the tech giant led by CEO Mark Zuckerberg, has reportedly explored the acquisition of Runway AI, a New York-based startup specializing in AI-generated videos. Sources familiar with the matter revealed that discussions took place but did not progress to a formal offer and are no longer active. Runway, valued at over $3 billion earlier in 2025, has been a pioneer in AI video generation since 2023.
Its latest model, Gen-4, allows users to create videos with consistent characters and objects, a challenging task for many AI services. The company has secured a deal with movie studio Lionsgate and its tools have been used in productions like Amazon’s “House of David” and a Madonna concert. Zuckerberg has been prioritizing meetings with leading AI figures, including CEOs and chief scientists, as part of his recruitment drive to build a “superintelligence” team.
Meta recently invested billions in Scale AI and hired its CEO, engaged in talks with AI search startup Perplexity, and held discussions with former GitHub CEO Nat Friedman and Safe Superintelligence CEO Daniel Gross. Representatives for both Runway and Meta declined to comment on the potential acquisition, which would have further signaled Meta’s commitment to advancing its AI capabilities. Alexandr Wang, the 28-year-old co-founder and CEO of Scale AI, has garnered attention following Meta’s $14 billion investment in his company.
Scale AI focuses on accelerating the development and deployment of AI technology, making it a valuable asset for tech giants seeking to enhance their AI capabilities. Founded in 2016, Scale AI has rapidly grown under Wang’s leadership, providing data and tools to improve the efficiency and accuracy of AI systems.
Meta’s AI acquisition strategy evolves
The company’s offerings have attracted interest from a wide range of industries looking to integrate AI into their operations. Meta’s significant investment in Scale AI highlights the growing importance of AI in the technology sector and the strategic value of Wang’s contributions. As AI continues to evolve, companies like Scale AI will play a crucial role in shaping the future of various sectors.
Surge AI, a data-labeling firm founded by Edwin Chen, has reportedly surpassed its competitor, Scale AI, in revenue despite never having raised outside investment. Surge AI brought in $1 billion last year, exceeding Scale AI’s $870 million revenue from 2024. Data labeling is essential for training AI systems, requiring extensive manual work to refine and validate outputs.
San Francisco-based Surge AI has distinguished itself by focusing on this crucial aspect of AI development, acting as a middleman to source contract workers for major players like Google, OpenAI, and Anthropic. Edwin Chen, Surge AI’s 37-year-old CEO and founder, has positioned the company as a higher-quality alternative to its competitors by employing higher-paid contractors, many with advanced degrees. However, the company faces accusations of bad labor practices and a recent lawsuit alleging worker misclassification and underpayment.
Despite the controversy, Surge AI has been profitable since its launch, underscoring its unique position in the competitive field of data labeling. Chen maintains a low profile, with his social media activity primarily focused on technical matters.
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