Technology company Meta Platforms is engaged in discussions to invest over $10 billion in the AI company Scale AI, though the terms of the potential agreement have not yet been finalized and remain subject to change.
Scale AI, founded in 2016 by Alexandr Wang and Lucy Guo—both formerly of Quora—specializes in comprehensive data labeling and annotation services. These services are integral to the training and assessment of machine learning models, particularly those used in large language processing and computer vision. The company serves clients such as OpenAI, Meta, Microsoft, Toyota, and various US government entities. Additionally, Scale AI oversees SEAL, a research program dedicated to the safety and alignment evaluation of AI technologies.
With a most recent valuation nearing $14 billion, Scale AI also facilitates a collaborative platform that enables the global exchange of AI-related research and insights. This platform includes contributors from over 9,000 locations worldwide. Notably, Scale AI has developed a specialized language model for defense applications, known as Defense Llama, which was built on Meta’s Llama 3 framework.
Scale AI reported $870 million in revenue for the previous year and projects earnings of approximately $2 billion for the current year. Among its clientele are Cisco, General Motors, Microsoft, OpenAI, and Meta. Both Microsoft and Meta hold equity stakes in the company.
Meta Deepens AI Focus
Meta previously participated in Scale AI’s $1 billion Series F funding round, which placed the company’s valuation at $13.8 billion.
Meta’s Chief Executive Officer Mark Zuckerberg has consistently emphasized AI as the company’s primary strategic focus in recent years. In line with this, Meta has committed $65 billion to AI initiatives in the current year. Unlike some of its major competitors, including Amazon, Alphabet, and Microsoft, which have collectively invested substantial sums into leading AI firms such as Anthropic and OpenAI, Meta has thus far maintained a more restrained approach to acquisitions within the AI space.
This strategy may be evolving. Meta and Scale AI are currently working together on a project that applies Meta’s Llama AI model in military contexts. In addition, Meta has recently formed a partnership with defense technology company Anduril to develop AI-powered systems.
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