According to insiders, Mark Zuckerberg is frustrated with Meta's current position in the AI sector and is willing to invest billions to persuade Scale AI's CEO, Alexander Wang, to join his company. Meta is finalizing a deal to invest $14 billion in Scale AI. The transaction details remain confidential. Reports earlier this week suggested Meta's investment might exceed $10 billion, with The Information stating it could reach nearly $15 billion.
Former Meta AI employees describe Wang as an ambitious leader who understands AI's technical complexities and how to build a business focused beyond research. After the lukewarm reception of Meta's latest Llama AI model, Zuckerberg is counting on Wang to better execute Meta's AI ambitions.
Instead of acquiring Scale AI directly, Meta is adopting a strategy similar to Google and Microsoft, bringing in AI talent through significant stakes rather than acquisitions. Meta is currently under FTC scrutiny for antitrust concerns and aims to avoid further regulatory issues.
The Information reports that Meta will acquire a 49% stake in Scale AI as part of the deal, with Wang helping lead a new AI research lab at Meta. Founded in 2016, Scale AI has gained attention for assisting major tech companies like OpenAI, Google, and Microsoft in preparing data for training advanced AI models. Meta is one of Scale AI's largest clients.
