Meta is in talks to make a multi-billion dollar investment in Scale AI, according to a report from Bloomberg. If the deal goes through, it could exceed $10 billion — not only becoming Meta’s largest external AI investment to date but also ranking among the biggest funding rounds ever for a private company.
Scale AI, led by CEO Alexandr Wang, provides data labeling services that power the training of AI models for major players like Microsoft and OpenAI. Data labeling — a critical step in building accurate AI systems — is largely performed by contractors. Recently, the U.S. Department of Labor closed an investigation into whether Scale was improperly classifying or underpaying those workers.
Per Bloomberg, Scale AI generated $870 million in revenue last year and is on track to nearly triple that, aiming for $2 billion this year.
Meta is no stranger to Scale AI’s growth story. The tech giant already invested during the company’s $1 billion Series F round, which valued Scale at $13.8 billion.
Beyond commercial AI work, Scale also built Defense Llama, a large language model for military applications — developed on top of Meta’s own Llama 3 platform.
This potential investment highlights the ongoing AI arms race among tech giants, with Meta looking to bolster its AI capabilities as the competition intensifies.
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