According to Bloomberg, Meta Platforms Inc. is reportedly in negotiations to invest more than $10 billion in scale AI to rapidly invest in scale AI, a new player, into the artificial intelligence (AI) ecosystem.
When completed, the billion-dollar deal ranks as the largest funding round ever for private companies, and the outlet reports that it will be the largest external AI investment to date.
The move reflects the meta-increasing ambition to control the AI market. The AI market is competing for the best language models for high-tech giants to develop and implement across platforms and products.
What does Scale AI do?
Under the direction of CEO Alexandr Wang, Scale AI provides high quality labeled data essential for training advanced AI models for key players, including Microsoft and Openai. In 2024, the company generated revenue of approximately $870 million, and is on track to more than doubled in 2025 to $2 billion, Bloomberg previously reported.
Much of the scale AI workforce consists of a global network of contractors. The company has been under scrutiny recently by the U.S. Department of Labor to misclassify workers as contractors and employees and investigate whether they are paying for them. The investigation was then closed without findings, but rekindled conversations about human labor behind artificial intelligence.
Expanding AI and Meta partnership
Meta is already familiar with scale AI. According to TechCrunch, the company previously invested in a billion-dollar Series F funding round of AI scale AI.
Additionally, in addition to Meta's open source Llama 3 Foundation model, the two companies share technical collaborations as Scale AI has built the Defense Model, a large-scale language model for military use.
A close partnership with Scale AI could provide competitive applications targeting the government and commercial sectors as the meta continues to focus on open source innovation and generation AI.
A successful transaction could accelerate Meta's already ambitious AI agenda and change the landscape of private AI investment.
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