Scale AI: Navigating Post-Meta Challenges and Refuting ‘Zombie’ Claims

The tech world was taken aback in June when Meta announced a planned $14.3 billion investment in Scale AI. The move, largely interpreted as a strategy to acquire the startup’s founder, Alexandr Wang, and a select group of his team, immediately cast a shadow of uncertainty over Scale AI’s future.

Shortly thereafter, OpenAI revealed its plans to wind down its collaboration with Scale, a company specializing in data preparation crucial for training AI models used by both artificial intelligence labs and major tech corporations. Following Meta’s announcement, reports surfaced indicating that Google and Elon Musk’s xAI had also paused their work with Scale. These developments led many to question the viability of Scale AI’s independent existence.

However, nearly five months following that landmark announcement, Scale AI’s CFO, Dennis Cinelli, offers a starkly different perspective. He insists that the company, with its substantial workforce of over 1,000 employees, is not only surviving but thriving.

“The deal has been misrepresented – portrayed as an acquihire or a licensing agreement, which is far from the truth,” Cinelli, who joined Scale in 2022, stated in an interview with CNBC. “We’ve actually secured some of the most significant deals in the company’s history in just the last two to three months.”

Founded in 2016, Scale AI is recognized primarily for its data business, where it competes with firms like Appen, Surge AI, and Mercor. In addition, the company’s applications business develops bespoke solutions aiding government entities and large-scale enterprises in AI deployment. Evidence of Scale’s continued success includes a $99 million contract with the U.S. Department of Defense in August, quickly followed by another $100 million contract in September.

Cinelli, 42, reports growth across both segments of the business, resulting in revenue that’s “well into the nine figures.” While refraining from specifying exact revenue figures, he did note that the company generated close to $1 billion in revenue the previous year, before the Meta deal. This information was confirmed by a company spokesperson in August.

The long-term viability of Scale has become a hot topic of debate within Silicon Valley circles. The Meta transaction was perceived as being among the trend of acquihires common in the industry, albeit at a significantly higher price point. Over the last year, companies like Microsoft, Amazon, and Google have increasingly favored these types of arrangements to secure top AI talent and license specific technologies without going through the regulatory complexities of full acquisitions.

In July, Google allocated approximately $2.4 billion to bring onboard Windsurf co-founder and CEO Varun Mohan, along with key research and development personnel. This arrangement didn’t involve a formal investment in Windsurf, but it did include a nonexclusive license to some of its technology.

Greg Martin, Managing Director at Rainmaker Securities, specializing in pre-IPO stock sales, described the Meta-Scale arrangement as a “quasi-acquihire”. He indicates that investors remain uncertain about the company’s future and its long-term prospects, stating that “it doesn’t feel like it can go public anymore.” Martin also notes growing investor attention towards competing firms like Anthropic and xAI.

“The ambiguity around Scale’s potential exit strategy is concerning,” Martin commented. “Has it, in a sense, already experienced its exit?”

Scale has been actively working to counter these perceptions and reassure potential investors, employees, and customers.

Jason Droege, promoted from strategy chief to interim CEO after Wang’s departure, published a blog post shortly after the Meta deal was announced, affirming that the company was neither winding down operations nor shifting its strategic direction.

Cinelli maintained that Scale continues to collaborate with “all the major AI labs and tech companies,” although he declined to name specific clients.

“We engaged in conversations to address concerns,” he explained. “The common questions revolved around our independence, our relationship with Meta, and our commitment to existing customers. Once these points were clarified, everyone seemed to understand.”

Currently, OpenAI, Google, and xAI are not listed as customers on Scale’s website, and representatives from these companies didn’t respond to requests for comment. Meta, however, is listed as a current client.

Wang, now 28, became the world’s youngest self-made billionaire through the success of Scale, though he subsequently lost this title to Polymarket founder Shayne Coplan, 27, in October, according to Forbes. Wang’s departure represented a significant loss for the company, but Cinelli assured that the “vast majority” of employees remain with the firm.

The Meta investment grants the tech giant a 49% stake in Scale, valuing the company at $29 billion on paper. However, as confirmed by a Scale spokesperson in June, Meta holds no voting power, and there is no product integration planned between the two companies. This strategic arrangement is intended to allow Scale to operate with a certain degree of independence, fostering innovation and preventing potential conflicts of interest with other Scale AI clients.

Cinelli reported consistent monthly growth in Scale’s data business since the Meta deal. He also noted that its applications business had doubled in the second half of 2025 compared to the first half. Furthermore, Scale anticipates that the applications unit will emerge as the company’s primary revenue source moving forward.

Despite these signs of growth, Scale has undergone a period of adjustment. In July, Droege announced the layoff of 200 full-time employees, representing approximately 14% of the company’s workforce. The streamlining was attributed to the need for a more agile operational structure in response to evolving market demands.

“These changes will enhance our agility, enabling us to adapt more rapidly to both market shifts and evolving customer requirements,” Droege stated in an internal memo at the time.

On Tuesday, Scale announced plans to hire 200 new employees across various divisions of the business, indicating a positive outlook and renewed commitment to growth. Additionally, the company announced expansions into larger office spaces in major hubs such as New York , Washington D.C., St. Louis, and London.

Scale’s largest office is located in San Francisco, occupying approximately 180,000 square feet of space previously held by Airbnb.

“We are doubling down on growth,” Cinelli affirmed.

However, Scale still has to prove and justify its valuation which is double the valuation of its last fundraise in 2024. Cinelli expressed confidence that this discrepancy will resolve itself over time as the company continues to execute its strategy and deliver strong results.

With $1 billion on its balance sheet, Scale is currently well-capitalized and not in immediate need of raising additional funds. Cinelli believes a key advantage in attracting top talent lies in the clarity of the company’s focused mission.

Under Wang’s leadership, Scale’s mission was to “strengthen human sovereignty.” In September, Droege introduced a new mission: “to develop reliable AI systems for the world’s most important decisions.” This shift is intended to focus Scale’s development efforts around key customer pain points and challenges.

Cinelli believes this strategic shift, combined with the company’s financial stability and recent performance, paints a picture fundamentally different from the popular narrative.

“The results we’re delivering demonstrate that we are far from being a ‘zombie company,'” he concluded.