Meta Platforms has closed one of the largest private company investments in history, securing a 49% stake in artificial intelligence startup Scale AI for $14.8 billion. The deal, finalized this week, represents Meta’s biggest external AI investment and signals CEO Mark Zuckerberg’s aggressive push to compete with rivals like OpenAI in the rapidly evolving artificial intelligence landscape.
The Strategic Partnership
Meta Platforms has agreed to take a 49% stake in artificial intelligence startup Scale AI for $14.8 billion, according to reports from The Information. This massive investment comes as Zuckerberg grows increasingly frustrated that competitors appear to be outpacing Meta in fundamental AI development capabilities.
Scale AI, founded in 2016 by CEO Alexandr Wang, specializes in data labeling services that are crucial for training machine learning models. The company has experienced rapid growth, generating approximately $870 million in revenue in 2024 and projecting to double that figure to $2 billion in 2025.
Why This Investment Matters
The partnership extends far beyond a simple financial transaction. In finalizing a deal to invest $14 billion in Scale AI, Meta’s Mark Zuckerberg is hiring its co-founder Alexandr Wang to help the social media company better execute on its AI ambitions. This strategic hire underscores Meta’s commitment to accelerating its AI development timeline.
Scale AI’s services are already integral to the AI ecosystem, providing data labeling to major players including Microsoft and OpenAI. The company’s expertise in preparing training data for large language models makes it a valuable asset as Meta seeks to enhance its own AI capabilities across its family of applications.
Market Impact and Competition
The deal value could reportedly exceed $10 billion, making it the largest external AI investment for the Facebook parent company and one of the largest funding events ever for a private company. This investment places Meta in direct competition with other tech giants who are also making substantial AI investments.
The timing is particularly significant as the AI industry continues to experience unprecedented growth and investment. Meta was already an investor in Scale AI’s previous $1 billion Series F funding round, which valued the company at $13.8 billion, making this new investment a substantial increase in valuation.
Strategic Implications
This investment represents a fundamental shift in Meta’s AI strategy. Rather than relying solely on internal development, the company is now making substantial external investments to accelerate its capabilities. The partnership with Scale AI provides Meta with enhanced data processing capabilities essential for training more sophisticated AI models.
The collaboration has already begun to bear fruit, with Scale AI having built Defense Llama, a large language model designed for military applications, using Meta’s Llama 3 as its foundation. This demonstrates the potential for expanded cooperation between the two companies.
Looking Forward
As the AI arms race intensifies among major technology companies, Meta’s historic investment in Scale AI signals its determination to remain competitive in this critical sector. The partnership positions Meta to leverage Scale AI’s data labeling expertise while providing the startup with the resources needed to scale its operations significantly.
This deal is expected to have ripple effects throughout the AI investment landscape, potentially setting new benchmarks for private company valuations and strategic partnerships in the artificial intelligence sector.
Sources:
- Reuters: https://www.reuters.com/business/meta-pay-nearly-15-billion-scale-ai-stake-information-reports-2025-06-10/
- TechCrunch: https://techcrunch.com/2025/06/08/meta-reportedly-in-talks-to-invest-billions-of-dollars-in-scale-ai/
- Bloomberg: https://www.bloomberg.com/news/articles/2025-06-08/meta-in-talks-for-scale-ai-investment-that-could-top-10-billion
- Business Standard: https://www.business-standard.com/technology/tech-news/meta-scale-ai-investment-talks-10-billion-external-funding-125060800389_1.html
