Meta Eyes Multi-Billion Dollar Investment in Scale AI

Meta is reportedly in the process of negotiating a significant investment in Scale AI, a company known for its data labeling services. According to Bloomberg, the value of the deal could surpass $10 billion. If finalized, this would represent the largest external AI investment for the parent company of Facebook and one of the largest funding events ever for a private enterprise.

Founded by CEO Alexandr Wang, Scale AI provides data labeling for companies like Microsoft and OpenAI to support AI model training. Recently, the Department of Labor concluded its investigation into Scale AI regarding employee misclassification and compensation issues.

Last year, Scale AI generated $870 million in revenue and projects to hit $2 billion this year. Meta was previously an investor in Scale AI's massive $1 billion Series F round, which valued the company at $13.8 billion. Notably, Scale AI developed the military-focused Defense Llama on top of Meta’s Llama 3 model.

Investments in AI have been a focal point for Meta, showcasing its ongoing commitment to advancing technologies that could reshape various industries. This substantial funding underscores Meta's strategic intent to bolster leading AI capabilities by aligning with prominent technology innovators like Scale AI.