Meta Platforms (META, Financial) has strategically invested $14.3 billion in AI data service provider Scale AI, acquiring a 49% non-voting stake. This move highlights Meta's accelerated push in the AI sector. As part of the deal, Scale's co-founder, Alexander Wang, will join Meta’s core AI team to focus on developing Artificial General Intelligence (AGI) while retaining his board position at Scale. Meta emphasized that this collaboration will enhance synergy in AI training data generation.
This investment underscores Meta's urgency in the AI race. Despite significant investments in AI infrastructure and the launch of the Llama 4 model, which received lukewarm market reactions, CEO Mark Zuckerberg is actively recruiting top talent. This includes meetings with AI scientists and restructuring office spaces to integrate new teams, as well as hiring from competitors like Google and Sesami AI.
Meta's strategic investment approach mirrors tactics used by Amazon (AMZN) and Microsoft (MSFT), allowing quick access to resources while avoiding antitrust scrutiny. Unlike typical acquisitions, Scale focuses on data annotation services, not large model development, providing a unique collaboration path for Meta to strengthen its AI data training capabilities and expand in defense technology through Wang's Washington connections.
Market reactions are mixed, with some analysts highlighting Meta's aggressive investment as a sign of internal challenges. However, Scale's projected revenue growth to $2 billion in 2024 indicates its robust momentum. The impact of this deal on the AI industry remains to be seen, but data is becoming a crucial battleground in the AGI race.
