Meta has taken a 49% stake in Scale AI for $14.3 billion, valuing the data-labeling startup at $29 billion. As part of the deal, Scale’s 28-year-old CEO Alexandr Wang will join Meta to head its new superintelligence unit.
Wang, a college dropout who built Scale into a major AI data firm, will remain on Scale’s board. Meta’s goal with this move is to bring in a strong business leader to boost its AI efforts, which have lagged behind rivals like OpenAI and Google.
Scale’s Chief Strategy Officer, Jason Droege, will take over as interim CEO. A few Scale employees will also move to Meta with Wang.
Despite the massive investment, Meta will not take a board seat at Scale. However, the deal has raised concerns that rival AI labs might stop using Scale’s services due to Meta’s deep involvement.
The investment marks Meta’s second-largest ever after WhatsApp.
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