Meta Explores Multi-Billion Dollar Investment in AI Data Startup Scale AI

Meta, the parent company of Facebook and Instagram, is reportedly nearing an agreement to invest several billion dollars in Scale AI, a startup that specializes in preparing data for artificial intelligence applications, according to individuals familiar with the negotiations.

This prospective investment highlights the sustained interest of major technology firms in AI startups amid intense competition to dominate the field. Such a move would be unusual for Meta, which generally refrains from investing in external companies.

Both Meta and Scale AI have declined to comment on the discussions.

Mark Zuckerberg, Meta’s CEO, has significantly intensified the company’s focus on artificial intelligence over recent years. Following the release of OpenAI’s ChatGPT chatbot in late 2022, Zuckerberg has prioritized integrating AI technologies across Meta’s product portfolio, including smart glasses and the newly launched Meta AI application.

Founded in San Francisco in 2016 by Alexandr Wang and Lucy Guo, Scale AI developed its business by employing large teams of contract workers who meticulously label and refine vast datasets, optimizing them for training AI models. The company’s clientele includes Microsoft, Cohere, Etsy, and OpenAI.

Scale AI has secured over $1 billion in funding from a diverse group of investors, including prominent venture capital firms such as Index Ventures and Founders Fund.

More recently, Scale AI has expanded its operations to serve enterprise and public sector clients, deploying consultants and engineers to collaborate with organizations and government agencies to develop AI-driven solutions.

Meta has also encouraged developers to utilize its open-source AI models to create applications across both private industry and public sector domains.

In November, Meta announced a shift in policy by permitting U.S. government agencies and contractors engaged in national security work to access its AI models for military applications. The company partnered with defense contractors Booz Allen Hamilton and Lockheed Martin, as well as startups including Scale AI, to support these initiatives.