TLDR;
- Meta is negotiating a $10 billion investment in Scale AI, its largest AI funding move yet.
- The deal would deepen Meta’s partnership with Scale AI, a key player in training data for machine learning.
- Scale AI’s revenue is projected to hit $2 billion in 2025, reflecting soaring demand for its services.
- This move signals Meta’s strategic shift toward external AI collaborations amid intensifying competition.
Meta is reportedly in advanced talks to make a monumental investment exceeding $10 billion in Scale AI, a fast-growing startup specializing in data labeling for artificial intelligence systems.
If finalized, the deal would mark Meta’s largest external AI investment to date and one of the most substantial private funding events in the tech industry’s history.
Scale AI, led by 27-year-old CEO Alexandr Wang, plays a critical behind-the-scenes role in the AI revolution. The company helps train machine learning models by organizing and labeling data, a foundational step in building sophisticated AI systems. Scale’s client roster already includes heavyweights like OpenAI and Microsoft. Meta is no stranger to the company either, it participated in Scale AI’s $1 billion Series F round last year, which valued the firm at $13.8 billion.
Meta’s evolving AI priorities
While Meta has traditionally focused on building AI tools in-house and open-sourcing its large language models, this potential move reflects a shift in strategy.
CEO Mark Zuckerberg has recently signaled a more aggressive approach to dominating the AI landscape, revealing plans earlier this year to spend up to $65 billion in 2025 on AI infrastructure and development. A significant portion of that may now be routed toward partnerships that can accelerate the company’s progress.
The investment in Scale AI would give Meta access to a proven partner with deep expertise in one of the most labor-intensive aspects of AI training. Scale’s data labeling services are not only vital to building smarter AI but are also used in highly sensitive applications.
One of its major collaborations with Meta involved developing Defense Llama, a specialized large language model based on Meta’s Llama 3 and built for national security use cases. This includes helping military planners and analysts carry out complex tasks like threat assessments and operational planning.
Scale AI surges in revenue and influence
Founded in 2016, Scale AI has seen explosive growth in recent years. The company pulled in $870 million in revenue in 2024 and is projecting to surpass $2 billion in 2025. This momentum has cemented its reputation as a central player in the AI training pipeline and made it an attractive target for companies looking to scale their AI capabilities quickly.
Despite facing scrutiny over labor practices involving its contractors, Scale AI recently emerged from a U.S. Department of Labor probe without facing penalties, removing a cloud that might have dampened investor enthusiasm. That outcome could help clear the path for Meta’s investment, assuming final terms are agreed upon.
Deal would reshape AI power dynamics
That said, if the $10 billion deal goes through, it would not only reinforce Scale AI’s standing in the tech ecosystem but also sharpen Meta’s competitive edge. Rivals like Microsoft and Amazon have already backed major AI startups such as OpenAI and Anthropic. For Meta, doubling down on Scale AI could ensure it doesn’t fall behind in a race where talent, data, and compute are increasingly being consolidated by fewer players.
Ultimately, the partnership would likely yield benefits for both companies. Meta gets a fast-track to stronger AI performance, while Scale AI secures long-term backing to expand its capabilities in sectors ranging from enterprise software to defense and beyond.
