Scale AI has emerged as a critical infrastructure provider in the artificial intelligence boom, with its meteoric revenue growth reflecting the surging demand for high-quality data labeling services essential to training advanced AI models.
Founded in 2016 by Alexandr Wang, who dropped out of MIT at age 19, Scale AI has transformed from a startup focused on autonomous vehicle data labeling into a cornerstone of the generative AI ecosystem. The company generated approximately $870 million in revenue in 2024 and projects to more than double that figure to $2 billion in 2025.
Meta Platforms is now reportedly in talks to make a substantial investment in Scale AI that could exceed $10 billion. If completed, this would represent Meta's largest external AI investment and one of the largest private funding events ever. Meta CEO Mark Zuckerberg has prioritized AI development, announcing plans to spend up to $65 billion on AI infrastructure in 2025.
Scale AI's business model relies heavily on contractors who label and annotate vast quantities of data for clients including Microsoft and OpenAI. This approach has faced scrutiny, with the company recently emerging from a Department of Labor investigation into whether it was misclassifying and underpaying employees. The investigation, which began in August 2024, was dropped in May 2025, though the company still faces lawsuits from former workers alleging unpaid wages and contractor misclassification.
Despite these challenges, Scale AI continues to expand its services beyond basic data labeling. The company is increasingly recruiting specialized workers with advanced degrees to help develop more sophisticated AI models, positioning itself as a comprehensive AI infrastructure provider in what it calls the "data foundry."
Scale AI's valuation has steadily increased, reaching $13.8 billion following its $1 billion Series F funding round in May 2024, which included participation from major tech companies and venture capital firms. Recent reports suggest the company could be valued as high as $25 billion in potential future funding rounds.