Meta to Invest Billions in Scale AI, Potentially Setting New Private Funding Record

CNBC AI News – June 8th: Sources familiar with the matter report that social media behemoth Meta is in advanced talks with AI startup Scale AI, eyeing a potential investment that could top $10 billion. If finalized, this deal would represent one of the largest private company financings in history, highlighting the growing significance of data in the AI arms race.

While the terms are still being ironed out and subject to change, this investment would mark Meta’s largest external commitment to AI to date, signaling a significant shift in strategy. Historically, Meta has leaned heavily on internal research and open-source initiatives to drive its AI ambitions.

Scale AI, founded in 2016 by CEO Alexandr Wang, focuses on providing high-quality data labeling services – the critical “fuel” that powers the training of machine learning models. The company’s value proposition lies in its ability to meticulously curate and label vast datasets, employing a workforce of contractors to annotate images, text, and other data types, thereby ensuring the quality and accuracy of AI training. The rise of generative AI has significantly boosted Scale AI’s prospects, with major players like Microsoft and OpenAI among its clients.

The growth trajectory of Scale AI has been nothing short of explosive. The company generated $870 million in revenue in 2024 and projects a doubling to $2 billion in sales for 2025. During its 2024 funding round, which saw participation from both Meta and Microsoft, Scale AI was valued at approximately $14 billion. Earlier this year, reports circulated of the company engaging in acquisition discussions valuing it as high as $25 billion.

Meta founder and CEO Mark Zuckerberg has explicitly prioritized AI, announcing plans to invest a staggering $65 billion in AI projects by 2025. The company’s strategy involves positioning its open-source large language model, Llama, as an industry standard, while actively integrating AI-powered chatbots into its flagship platforms like Facebook, Instagram, and WhatsApp, which have a combined user base of over a billion monthly active users. This potential multi-billion dollar investment in Scale AI underscores Meta’s commitment to fortifying its AI infrastructure and bolstering its data capabilities as it competes for dominance in this rapidly evolving landscape.