Meta Platforms Inc. is preparing to invest more than $10 billion in Scale AI, a move that marks its most significant external venture into artificial intelligence to date. Scale AI, founded by Alexandr Wang in 2016, provides crucial data labeling services that power machine learning systems—cleaning, tagging, and organizing data to train generative AI models effectively. The investment, first reported by Bloomberg, would rank among the largest private AI funding rounds ever, highlighting Meta’s shift from in-house development to strategic external partnerships.
Scale AI has quickly risen to prominence, boasting clients like Microsoft and OpenAI. The startup, last valued at $14 billion in 2024, is reportedly considering a new funding round that could push its valuation to $25 billion. This sharp rise is backed by a surge in revenue, from $870 million last year to an expected $2 billion in 2025. Meta and Microsoft were among the notable backers in Scale’s previous round, reinforcing the growing demand for robust infrastructure behind AI development.
While Meta and Scale AI have yet to publicly confirm the deal, reports indicate that negotiations are ongoing and terms may still change. Nevertheless, the potential investment signals a significant pivot in Meta’s AI playbook. Unlike competitors such as Microsoft, Amazon, and Alphabet—which have funneled massive investments into external AI firms like OpenAI and Anthropic—Meta has long focused on internal innovation. This deal, however, suggests a more hybrid approach going forward.
At the center of Meta’s AI ecosystem is Llama, the company’s large language model powering chatbots on platforms like Facebook, Instagram, and WhatsApp. Used by over a billion people monthly, Llama represents Meta’s commitment to keeping pace in the global AI race. CEO Mark Zuckerberg reinforced this in January, announcing plans to spend as much as $65 billion on AI in 2025 alone, underlining its centrality to Meta’s future.
Scale AI, meanwhile, is expanding its influence beyond the commercial sphere. In early 2025, the company secured a contract with the U.S. Department of Defense to develop AI agents, a deal it described as a “significant milestone in military advancement.” With such public and private momentum, the Meta-Scale partnership could redefine AI development standards and reshape the competitive landscape of tech giants worldwide.
Source: Business day