Meta Buys 49% of Scale AI for $14.3 Billion

Meta has invested $14.3 billion to acquire a 49% stake in Scale AI, valuing the data-labeling company at $29 billion. As part of the deal, Scale AI's founder and CEO Alexandr Wang will depart to lead Meta's new 'superintelligence' division, with Jason Droege, Scale's Chief Strategy Officer, taking over as interim CEO. The partnership grants Meta privileged access to Scale's data infrastructure, which is vital for developing advanced AI models, especially as Meta's Llama models have received mixed feedback. Major clients of Scale AI, including Google, Microsoft, and OpenAI, have raised concerns about data security and competitive risks, with Google reportedly ending its collaboration with Scale. Additionally, Google faces antitrust scrutiny related to its planned $32 billion acquisition of cybersecurity firm Wiz, reflecting broader regulatory and competitive tensions in the AI sector. These moves highlight the intensifying race among tech giants to secure critical AI data and infrastructure.