Meta invests $14.8 billion in Scale AI and recruits its CEO

Meta has finalized its $14.3 billion investment in Scale AI, which now values the startup that provides other companies with data labeling and model evaluation services for AI training at $29 billion. As part of the deal, Scale AI's founder and CEO Alexandr Wang will be joining Meta. According to The New York Times, Wang will lead Meta's fledgling "Superintelligence lab." A few days ago, several reports came out that Meta chief Mark Zuckerberg has been personally overseeing the recruitment for a team he's assembling to achieve AI superintelligence. 

Zuckerberg, who was reportedly frustrated by the quality of Meta's Llama 4 LLM, has been inviting potential recruits to his home and offering them compensation packages worth seven to nine figures. Wang said in his note to Scale employees that he's taking a few other people from the startup with him to Meta to work on artificial intelligence. Meta has yet to formally announce the team and to reveal what their role will be, but their ultimate goal based on the name "Superintelligence lab" is to develop AI with intellectual powers far beyond any human's.

This investment is Meta's second largest after its $19 billion Whatsapp acquisition. With its $14.3 billion investment, Meta will have a 49 percent stake on Scale but will have little control over its operations. The Times said the companies decided on that structure to avoid being scrutinized by regulators. Both Amazon's $4 billion investment in Anthropic and Microsoft's close ties to OpenAI were probed by regulators, after all. Meta itself is still battling the FTC in an antitrust case over its acquisitions of Instagram and WhatsApp. 

In his note to employees, Wang wrote that "opportunities of this magnitude," pertaining to Meta's investment, "come at a cost." That cost, he said, was his departure. Wang will still serve on Scale's Board of Directors, but his position as CEO will be taken over by Jason Droege, the startup's current Chief Strategy Officer. 

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