Meta has finalized a landmark deal to acquire a 49 percent stake in Scale AI, valuing the company at over $29 billion. Sources told Axios that Meta will invest about $15 billion in cash to secure this significant minority position, marking a major commitment to expanding its role in the fast-growing artificial intelligence sector. Scale AI is a leading AI company specializing in producing high-quality training data and advanced AI infrastructure as a service. Its rapid growth has been driven by machine learning advancements and rising demand for AI across industries. Meta’s investment makes it a major stakeholder in Scale and the future of AI development. The deal grants Meta a non-voting stake, meaning it will not control Scale’s operations or decisions, signaling a strategic partnership rather than operational dominance. As part of the agreement, Scale’s CEO, Alexandr Wang, will join Meta in an undisclosed role, indicating closer integration of Scale’s expertise with Meta’s AI R&D.

Additionally, Scale’s Chief Strategy Officer, Jason Droege, is expected to support Meta’s AI strategic goals. Scale employs around 1, 000 experts in machine learning, data annotation, and AI system design, focusing on delivering precise training data crucial for developing reliable AI models like natural language processing and computer vision technologies. This collaboration is expected to accelerate AI advancements aligned with Meta’s ambitions in social media, virtual reality, and augmented reality. The AI industry is highly competitive, with major players like Google, Microsoft, and OpenAI also investing in cutting-edge AI technologies. Meta’s heavy investment in Scale reflects the importance of partnerships and access to quality data to maintain competitive advantage. Though Meta holds a large stake, Scale remains independent, with founders and management retaining majority control, preserving its culture and strategic direction while benefiting from Meta’s resources and market reach. The deal highlights the soaring valuations of AI firms, with Scale’s $29 billion valuation making it one of the most valuable private AI companies worldwide, reflecting strong investor confidence in AI’s transformative potential. Looking forward, the Meta-Scale partnership aims to drive innovations in data quality, model training, and large-scale AI deployment. By combining Meta’s vast computing power and user base with Scale’s data expertise, the partnership seeks to speed development of smarter, more efficient AI systems for diverse applications. This investment exemplifies a broader trend of tech giants securing key IP, talent, and data through major investments in AI startups, crucial for shaping the future technology landscape. Both Meta and Scale express optimism that their collaboration will propel meaningful AI advancements, enabling new applications and services that benefit users globally.