Meta is paying $14.3 billion to amass 49 % of Scale AI and rent its CEO, Alexandr Wang, to revamp its troubled AI efforts.
As a part of the deal, Wang will report on to Meta CEO Mark Zuckerberg and stay on Scale’s board of administrators, each firms introduced on Thursday. Sources say Wang will lead a brand new AI lab at Meta tasked with constructing “superintelligence.” Meta spokesperson Ashley Zandy says the corporate “will share extra about this effort and the nice folks becoming a member of this workforce within the coming weeks.”
Zuckerberg has been actively recruiting a brand new workforce of researchers from rival corporations to affix Wang’s workforce, based on folks acquainted with the matter and different press reviews. The Meta founder has reached out to potential recruits immediately — often through a chilly e-mail or WhatsApp message — and lured a few of them away from firms like Google with seven- and eight-figure compensation packages.
Scale works with Google, OpenAI, Anthropic, and others to assist prepare their fashions by having people annotate and label the info that feeds them. Most of that work is carried out by way of low-cost labor exterior of the US, and it has turn into a important part of AI improvement. With Wang becoming a member of Meta, Scale is naming Jason Droege, its former chief technique officer, as its new interim CEO.
“We’ve grown to over 1,500 folks and turn into the trusted companion for mannequin builders, enterprises, and governments constructing and deploying the neatest Al instruments and functions,” Wang, who at age 21 grew to become often called the world’s youngest self-made billionaire due to his stake within the firm, stated in a memo to Scale workers.
“Scale is now one of the vital impactful firms on the planet, accelerating the event of what could also be an important expertise in human historical past. At this time, we’re saying an enormous new funding from Meta. It is a main milestone and a strong validation of the arduous work you’ve all put into Scale’s mission.”
Wang added that the “proceeds from Meta’s funding can be distributed to these of you who’re shareholders and vested fairness holders, whereas sustaining the chance to proceed taking part in our future progress as ongoing fairness holders.”
By not absolutely buying Scale, Meta is following Huge Tech’s established playbook of hiring key AI expertise whereas additionally investing of their startups. This course of is designed to cut back the danger of antitrust scrutiny; nonetheless, the cope with Scale is more likely to nonetheless be scrutinized by governments, though Meta will obtain solely non-voting shares within the firm.
This yr, Scale signed a cope with the Division of Protection for a first-of-its-kind AI agent program for US navy planning. Since then, it has expanded its enterprise with different governments, just lately inking a five-year deal to supply AI instruments to Qatar. The corporate’s work with governments in Asia and Europe might lead to a large portion of its total gross sales over the following two quarters.
Meta, in the meantime, simply went to trial to defend itself from being damaged up by the US authorities. The end result of that case remains to be unsure.
Because the disappointing debut of Llama 4 earlier this yr, Meta CEO Mark Zuckerberg has been desperate to meet up with rivals like Google, OpenAI, Anthropic, and DeepSeek. Llama 4’s launch was delayed a number of instances, after which Meta was caught gaming a public leaderboard to make the mannequin seem higher than it truly was. The corporate has nonetheless not launched Llama 4 Behemoth, its largest and costliest model that was teased in April.
Final month, Zuckerberg stated that two of Meta’s high priorities for 2025 are making its ChatGPT rival, Meta AI, “the main private AI” and “constructing full basic intelligence.” He just lately acknowledged that Meta AI has reached one billion month-to-month customers, though the prominence of the assistant throughout Instagram, WhatsApp, and Fb closely influences this quantity.
In April, Meta launched a standalone app for Meta AI, that includes a social feed that showcases how individuals are utilizing it. The app briefly reached the highest of the App Retailer however hasn’t sustained that stage of recognition.