Meta of lectures investing in scale AI at over $10 billion amid expanding AI push

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Meta Platforms Inc. is conducting sophisticated discussions on investing in over $10 billion in artificial intelligence (AI) startup scale AI.Bloomberg.

The deal still under negotiation could become one of the biggest private funding rounds in history.Bloomberg.

Founded in 2016 by CEO Alexandr Wang, Scale AI offers data labeling services essential for training machine learning models.

The company's client list includes AI Powerhouses such as Microsoft and Openai. The scale, which was valued at approximately $14 billion in 2024, is in charge of a tender offer that could then increase its valuation to $25 billion.

Meta shifts strategy within AI Arms Race

Meta's potential multi-billion dollar stock represents a strategic pivot for a company that has relied on in-house AI research and open source development in the past, rather than making large external investments like its competitors.

This approach is very different from that of other large tech companies. Microsoft has poured over $13 billion into Openai, while Amazon and Alphabet each have committed billions to artificial AI startups. Many of these investments are configured to include cloud computer credits and do not operate a cloud platform, so the model meta may not follow.

In January, Meta CEO Mark Zuckerberg declared that AI is the company's top priority and announced plans to invest $65 billion in AI projects in 2025. One of its flagship efforts is an open source, large-scale language model that bolsters AI assistants that have reached Facebook, Instagram and Whats approaches.

If scale trading is realized, it marks the largest external AI trading in Meta and deepens its involvement in AI data infrastructure. This is important to maintain competitiveness in rapidly evolving generation AI landscapes.

Scale AI: Data Power House

Scale AI shows meteor growth, with revenues expected to be $870 million in 2024 and $2 billion in 2025. The company plays a key role in the AI ​​ecosystem by using its vast network of contract workers to clean and label the datasets, images, text and other data needed to train advanced models.

As demand for high quality, well-curated data intensifies, Scale's services have become essential, especially as generative AI tools spread across industries and applications.

We shared our interest in defense technology.

Both meta and scale AI are increasingly expanding its reach into defense technology. Meta recently partnered with defense contractor Anduril Industries to develop an AI-enabled military product, including virtual/augmented reality helmets. META also allows AI models used by US government agencies and defense contractors.

The companies are working with the Defence Llamas, a military-centric version of Meta's language model. Meanwhile, Scale AI secured a US Department of Defense contract earlier this year and developed AI agent technology.

The alignment of their defensive ambitions may be another factor that strengthens interest in meta size.

The terms of metascale trading remain liquid, but the potential for investments of over $10 billion highlights a new phase in Meta's AI playbook. Investing in basic AI infrastructure through scales like high-growth startups gives me meta-access to both strategic data capabilities and government partnerships, as it works to bridge the gap with AI leaders such as Microsoft and Google.

If confirmed, this deal could not only reconstruct the role of meta in the global AI race, but also cement-scale the AI ​​position as a core force in the generation AI revolution.

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