In a significant move that underscores the intensifying competition in artificial intelligence, Meta Platforms has acquired a 49% stake in data-labeling firm Scale AI for $14.3 billion, as confirmed on June 12, 2025. The deal values Scale AI at $29 billion, more than double its valuation from a year ago.
Founded in 2016, Scale AI has become a critical player in the AI ecosystem by providing vast amounts of labeled and curated training data essential for developing sophisticated AI tools like OpenAI's ChatGPT. The company generated approximately $870 million in revenue in 2024 and expects to exceed $2 billion in 2025.
A key component of the deal involves Scale AI's founder and CEO, Alexandr Wang, joining Meta to lead its new 'superintelligence' initiative. Wang, who dropped out of MIT to co-found Scale AI, has been widely recognized as one of Silicon Valley's most promising entrepreneurs. Jason Droege, Scale AI's chief strategy officer, will take over as CEO.
The acquisition reflects Meta CEO Mark Zuckerberg's growing frustration with his company's position in the AI race. According to sources familiar with the matter, Zuckerberg has been increasingly concerned about falling behind competitors like OpenAI and Google in both underlying AI models and consumer-facing applications. Meta's release of its Llama 4 AI models in April reportedly received a tepid response from developers, further motivating this strategic move.
Despite the competitive implications, OpenAI's CFO Sarah Friar announced at the VivaTech conference in Paris that her company will continue working with Scale AI. "We don't want to ice the ecosystem because acquisitions are going to happen. And if we ice each other out, I think we're actually going to slow the pace of innovation," Friar stated.
However, not all companies are maintaining their relationships with Scale AI. Google, reportedly Scale AI's largest customer with plans to pay approximately $200 million this year for human-labeled training data, is now seeking to cut ties with the company following Meta's investment. This development highlights the complex competitive dynamics reshaping the AI industry as major players vie for advantage in this rapidly evolving field.