Meta Platforms is reportedly in advanced discussions to invest over $10 billion in Scale AI, a top-tier startup specializing in data labeling for machine learning . This potential deal marks one of the largest private funding rounds ever and signifies a strategic pivot for Meta, traditionally reliant on in‑house AI development.
Why Scale AI?
Founded in 2016, Scale AI empowers AI developers by annotating vast amounts of data, images, audio, text, critical for training sophisticated models. With an estimated 2024 valuation near $14 billion, Scale’s valuation could climb to $25 billion in a potential IPO. Already backed by Nvidia, Amazon, Microsoft, and Meta, Scale has become a backbone of the generative AI revolution.
What the Deal Could Mean for Meta
If finalized, this investment would be Meta’s largest external AI bet, a departure from its traditional internal-first approach. Up until now, Meta has built its AI capabilities through in‑house research and open‑source efforts, such as its LLaMA large language models.
Meta CEO Mark Zuckerberg has earmarked up to $65 billion in AI-related spending for 2025, focusing on growing data centers, GPU infrastructure, and R&D teams. An external backing of Scale AI could amplify this push.
Strategic Alliances and Defense Tie‑Ins
Meta and Scale have already worked together on Defense Llama, a national‑security–focused derivative of LLaMA. Scale also holds a U.S. Department of Defense contract, and Meta is collaborating with Anduril Industries on military-oriented AI applications. Their combined efforts indicate not just technological, but geopolitical alignment around AI‑based defense solutions.
Broader AI Investment Context
Meta is adhering to a trend in the IT industry. Microsoft has made over $13 billion in OpenAI investments. Both Alphabet and Amazon have invested billions of dollars in Anthropic. With this funding, Meta will be able to compete with other companies that are forming partnerships to strengthen their position in the AI market.
What’s Next?
Neither Scale nor Meta have made any public pronouncements regarding the arrangement, and the details are still being worked out. If approved, the investment might change Meta’s AI supply chain by adding top-notch Scale data pipelines to support the company’s ambitious internal AI aspirations.
This move could well redefine Meta’s AI innovation model, from building everything in-house to leveraging external expertise, mirroring the strategic evolution seen across Big Tech.
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