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Scale AI Vows Independence Despite Meta's $14.3B Stake

Scale AI's interim CEO Jason Droege has publicly affirmed the company will maintain its independence following Meta's $14.3 billion investment for a 49% stake, valuing the AI data labeling firm at $29 billion. In recent statements, Droege emphasized that Meta won't receive preferential treatment despite being a long-time customer since 2019. The deal, which saw Scale's founder Alexandr Wang depart to lead Meta's new superintelligence unit, represents Meta's second-largest investment ever after its WhatsApp acquisition.
Scale AI Vows Independence Despite Meta's $14.3B Stake

Scale AI is determined to chart its own course despite Meta's massive investment, according to interim CEO Jason Droege, who has been vocal about maintaining the company's autonomy in the wake of the social media giant's $14.3 billion stake.

In a memo addressed to customers, employees, and investors in mid-June, Droege made it clear that "unlike some other recent tech deals in the AI space, this is not a pivot or a winding down." He emphasized that "Scale remains, unequivocally, an independent company," describing the investment as "a validation of the course we're on."

The deal, which values Scale AI at $29 billion, gives Meta a 49% non-voting stake in the data-labeling startup. Despite the substantial investment, Meta doesn't plan to take a board seat, reinforcing the appearance of Scale's continued independence. However, the arrangement has raised eyebrows among antitrust experts who question whether the deal structure might be designed to avoid regulatory scrutiny.

Scale's founder and former CEO, 28-year-old Alexandr Wang, has departed to lead Meta's new "superintelligence" unit, taking fewer than a dozen of Scale's approximately 1,500 employees with him. Wang will remain on Scale's board while working at Meta, potentially creating concerns for Scale's other clients who might worry about Meta gaining insights into competitors' data strategies.

The investment comes as Meta CEO Mark Zuckerberg has reportedly grown frustrated with his company's position in the AI race. Meta's Llama 4 AI models released in April were not well received by developers, and the company has delayed the release of its more powerful "Behemoth" model due to concerns about its capabilities relative to competitors like OpenAI and Google.

For Scale AI, which was valued at approximately $14 billion in a May 2024 funding round, the deal represents a significant valuation jump. However, it may come at a cost, as reports indicate that some of Scale's major clients, including OpenAI and Google, have begun winding down their work with the company following the announcement of Meta's investment.

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