In a bold move shaking up the tech world, Meta has invested a massive $14.3 billion into Scale AI, valuing the startup at $29 billion. But this isn’t just about the money — it’s about talent. Meta isn’t just backing Scale AI financially; it’s poaching the company’s 28-year-old CEO, Alexandr Wang, to lead its next big leap: the superintelligence race.
The Deal That’s Turning Heads
Meta will take a 49% stake in Scale AI, a San Francisco-based data-labeling startup crucial for training advanced AI models. While financial terms weren’t officially announced, insiders reveal that the primary motivation behind this deal is to bring Alexandr Wang on board to spearhead Meta’s new superintelligence division.
Wang, a dropout from MIT and the son of Chinese physicist immigrants, co-founded Scale AI in 2016. Since then, he has built the company into a cornerstone of the AI industry, supplying labeled data to giants like OpenAI, Amazon, and even Meta itself. He’s also become a well-known name in Washington, testifying before Congress and securing government contracts.
Why Meta Wants Wang
Meta, once a frontrunner in open-source AI, has recently struggled to keep pace with rivals like Google, OpenAI, and DeepSeek. Key talent departures and delayed product launches have slowed its momentum. With Alexandr Wang — a savvy business operator rather than a research scientist — Meta CEO Mark Zuckerberg is betting on a new kind of leadership. One that mirrors OpenAI’s Sam Altman: a connector, a visionary, and a deal-maker.
A few top Scale employees will follow Wang to Meta, although Wang will retain his position on Scale’s board. The company’s Chief Strategy Officer, Jason Droege, will step in as interim CEO.
What This Means for Scale AI
Though the deal is a huge financial win — especially for early investors like Accel and Index Ventures — there are potential downsides. Some of Scale’s major clients, including rival AI labs, might be hesitant to continue using its services. Their concern? Meta, now deeply tied to Scale and with Wang still involved, could gain insight into competitors’ data operations.
Still, Scale’s core business — providing high-quality labeled data through platforms like Remotasks and Outlier — remains vital for training tools like ChatGPT. And with the $14.3 billion cash infusion, the company has more than enough fuel to keep innovating.
The Bigger Picture
This is Meta’s second-largest investment ever, after acquiring WhatsApp for $19 billion. And it signals a powerful shift in strategy: rather than just building, Meta is now buying its way back into the AI spotlight.
As AI competition intensifies globally, this deal could reshape the landscape — both in Silicon Valley and beyond.
