Scale AI confirms $14.3 billion investment by Meta, CEO to leave company

Data-labeling company Scale AI confirmed on June 13 that it has secured a substantial investment from Meta, with the firm now valued at $29 billion.

The investment, confirmed on Scale AI's website, includes a $14.3 billion contribution from Meta, which grants the tech giant a 49% stake in Scale AI.

As part of the deal, Scale AI co-founder and CEO Alexandr Wang will step down from his position to join Meta. Wang will focus on the company’s AI initiatives, particularly in the development of superintelligence.

Scale AI’s current chief strategy officer, Jason Droege, will serve as interim CEO.

Meta spokespersons confirmed the investment, stating, “Meta has finalized our strategic partnership and investment in Scale AI. As part of this, we will deepen the work we do together producing data for AI models, and Alexandr Wang will join Meta to contribute to our superintelligence efforts.”

Scale AI, known for its data-labelling services used to train large language models, said it would use the investment to pay off investors and fuel growth, although the company will remain independent.

Wang will retain a position on Scale AI's board of directors.

The move is seen as a response to intensifying competition in the AI space.

Meta's rivals, including Google, OpenAI, and Anthropic, have rapidly advanced in AI technology, and the company has struggled to keep pace. Last year, Meta reportedly lost 4.3% of its top AI talent to other labs, according to data from SingalFire.

Scale AI's data labelling has become a critical component for top AI labs like OpenAI, which rely on its services to create and refine generative AI models.

In recent months, the company has expanded its hiring of highly skilled workers, including PhD scientists and senior engineers, to produce the high-quality data needed for cutting-edge AI development.