Meta is in discussions to invest billions of dollars in Scale AI, a San Francisco-based startup that provides data labeling services to help companies train their AI models. According to sources familiar with the matter, the deal could exceed $10 billion, making it one of the largest funding events ever for a private company. Scale AI, founded by CEO Alexandr Wang, has gained significant influence in tech and policy circles in recent years.
The company uses a network of contractors to label the data that tech firms such as OpenAI use to improve their AI models. It has also increasingly enlisted experts with advanced degrees to help develop more sophisticated applications. The potential investment signifies Meta’s growing interest in the AI industry and reflects the larger market trend towards enhancing AI capabilities.
Scale AI generated about $870 million in revenue in 2024 and expects $2 billion in revenue this year.
Meta’s interest in Scale AI
The demand for Scale AI’s services has increased, especially in the wake of the Chinese AI developer DeepSeek’s model that rivaled America’s best.
More companies are investing in models that mimic human reasoning and carry out complex tasks. Scale AI has also deepened its relationship with the US government through defense deals. Wang, a China hawk, has developed ties with lawmakers concerned about China’s ascendance in AI.
For Meta, partnering with Scale AI may help it keep pace with AI rivals like Google and OpenAI while building deeper ties with the US government as it pushes into defense tech. The potential tie-up offers Scale AI a powerful ally and a full-circle moment for Wang, who was inspired by the story of Facebook’s founding. The discussions between Meta and Scale AI underscore the intensifying competition in the tech industry and the strategic importance of advanced AI tools.
If finalized, the deal would significantly bolster Meta’s AI infrastructure and capabilities.
Deanna Ritchie is a managing editor at DevX. She has a degree in English Literature. She has written 2000+ articles on getting out of debt and mastering your finances. She has edited over 60,000 articles in her life. She has a passion for helping writers inspire others through their words. Deanna has also been an editor at Entrepreneur Magazine and ReadWrite.
