In a major development in the global AI arms race, Meta is reportedly negotiating a multi-billion-dollar investment in Scale AI, a data infrastructure startup that supports giants like Microsoft and OpenAI.
According to sources, the deal could exceed $10 billion, positioning it as the largest external AI investment in Meta’s history and one of the biggest ever in the private tech sector.
Scale AI, led by CEO Alexandr Wang, specializes in providing high-quality data labeling services, a foundational step in training AI models. The firm has played a key role in powering advancements for major tech firms and defense applications. Last year, Scale AI reportedly generated $870 million in revenue and is projected to hit $2 billion this year.
Meta, which already invested during Scale’s $1 billion Series F round, is looking to deepen its involvement. Notably, Scale AI built Defense Llama, a military-grade AI model based on Meta’s Llama 3, further tying the two companies’ futures together.
As Meta accelerates its ambitions to lead in generative AI, this investment underscores the strategic importance of controlling AI infrastructure and training data. If finalized, the deal could reshape the competitive landscape of artificial intelligence.
