Meta Platforms is making a bold move to strengthen its position in the fiercely competitive AI landscape by investing $15 billion in Scale AI, a data labeling company that provides critical infrastructure for training advanced AI models.
According to multiple reports, the deal values Scale AI at approximately $25 billion, nearly double its previous valuation of $13.8 billion last year. The investment gives Meta a 49% stake in the company, which generated $870 million in revenue in 2024 and expects to more than double that to $2 billion in 2025.
The centerpiece of this partnership is the formation of a new 'superintelligence' research lab at Meta, which will be led by Scale AI's founder and CEO Alexandr Wang. The 28-year-old entrepreneur has built Scale AI into a crucial backbone of the AI industry since founding it in 2016, providing data labeling services to major tech companies including OpenAI, Google, Microsoft, and Meta itself.
Meta CEO Mark Zuckerberg is reportedly taking a hands-on approach to this initiative, personally recruiting approximately 50 top AI researchers and engineers, including talent from competitors like OpenAI and Google. Sources familiar with Zuckerberg's thinking indicate he believes Meta can and should outpace other tech companies in achieving artificial general intelligence (AGI).
The timing of this deal is significant as Meta faces challenges with its AI development efforts. Reports suggest the company's latest Llama 4 models released in April fell short of internal performance expectations, and the release of its flagship 'Behemoth' model has been delayed due to capability concerns.
Scale AI brings valuable expertise to the partnership, particularly in data labeling and model evaluation—critical components for developing advanced AI systems. The company has also expanded into government and defense contracts, including developing Defense Llama, a large language model built on Meta's Llama 3 that is customized for military and national security applications.
This investment represents a strategic shift for Meta, which has traditionally emphasized in-house research and open-source models. By bringing in Wang and his team, Meta aims to accelerate its AI development capabilities and compete more effectively with other tech giants like Microsoft and Google in the race toward superintelligence—AI systems that would theoretically surpass human cognitive abilities.