Meta invests in Scale AI and appoints founder to lead AI unit
Meta Platforms has announced a substantial investment in Scale AI, which has resulted in a valuation of the data-labelling startup exceeding $29bn.
This investment will see Scale AI's founder, Alexandr Wang, take on a leadership role at Meta, where he will oversee the company's AI initiatives while retaining his position on Scale AI's board of directors.
Recently, Meta Platforms reportedly agreed to acquire a 49% stake in the US-based AI startup for $14.8bn.
Sources familiar with the negotiations, as reported by Reuters, suggest that the primary aim of this investment is to secure Wang's expertise to lead Meta's new superintelligence unit.
The partnership aims to enhance the existing commercial relationship between Meta and Scale AI, facilitating the rapid deployment of Scale's data solutions.
Following the investment, Scale AI has appointed Jason Droege, its chief strategy officer, as interim CEO.
Droege, who joined Scale in September 2024, brings over two decades of experience from companies such as Uber Eats and Axon.
Droege said: 'Meta's new investment and our broadened commercial agreement is a testament to the incredible work and dedication of the entire Scale team, and the tremendous upside that lies ahead for Scale.'
According to Scale AI, the funds from the investment will be used to drive 'innovation' and strengthen strategic partnerships with clients.
The company plans to distribute a portion of the proceeds to its shareholders and vested equity holders, providing liquidity while allowing them to maintain their stakes in Scale.
Following the investment, Meta will hold a minority interest in Scale AI's outstanding equity.
The company will continue to collaborate with AI laboratories, multinational corporations, and government entities to provide data and technology solutions as the field of AI evolves.
In a statement, Wang said: 'AI is one of the most revolutionary technologies of our time, with unlimited possibility and far-reaching influence on how people, businesses and governments succeed.
'Scale bridges the gap between human values and technology to help our customers realise AI's full potential. Meta's investment recognises Scale's accomplishments to date and reaffirms that our path forward – like that of AI – is limitless.'
"Meta invests in Scale AI and appoints founder to lead AI unit" was originally created and published by Verdict, a GlobalData owned brand.
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