Meta plans $10B investment in AI startup
Meta bets big on AI growth
Meta Platforms Inc. is reportedly in advanced talks to invest over $10 billion in Scale AI, a San Francisco-based artificial intelligence startup.
If finalized, the deal would mark one of the largest private investments in the tech sector and Meta’s most significant external bet on AI to date, Bloomberg reports.
The potential investment underscores CEO Mark Zuckerberg’s strategic focus on artificial intelligence as Meta’s top priority for 2025. In January, the company announced plans to allocate up to $65 billion toward AI-related initiatives, including consumer applications, infrastructure, and strategic partnerships.
Scale AI and Meta’s strategic shift
Founded in 2016 by Alexandr Wang, Scale AI is a key player in the generative AI space, specializing in data labeling and model training. Its client roster includes tech giants like Microsoft and OpenAI. While the company was recently valued at $14 billion, a tender offer could push its valuation to $25 billion. Though terms are still under negotiation, the deal signals a departure from Meta’s usual reliance on internal development. Unlike Microsoft, Amazon, and Alphabet, which leverage their cloud platforms for AI integration, Meta lacks a similar infrastructure, making this investment particularly noteworthy.
Defense collaboration and outlook
Meta and Scale are already working together on defense-focused projects, including Defense Llama — a military-grade version of Meta’s Llama language model. Earlier this year, Scale secured a contract with the U.S. Department of Defense and has been expanding its footprint in the national security AI sector. Additionally, Meta is collaborating with Anduril Industries to develop AR/VR-powered helmets for military use. Meanwhile, Meta’s AI assistant now serves over a billion users across Facebook, Instagram, and WhatsApp.
If completed, the investment would significantly strengthen Meta’s position in the AI race and establish Scale AI as a leader in both commercial and defense applications of artificial intelligence.
It’s worth noting that Meta shareholders recently voted overwhelmingly against a proposal to explore adding Bitcoin to the company’s treasury.
