Meta invested $14.8 billion in Scale AI, a data classification company, in a deal that gives it a 49% non-voting minority stake, accompanied by an exciting move with Scale's CEO, Alexander Wang, transitioning to work at Meta.
This deal is the second largest investment in the company's history, coming at a time when concerns are growing over attempts by tech giants to evade regulatory oversight through what's known as disguised acquisitions.
An attempt to circumvent oversight?
Although the deal does not grant Meta a controlling stake, and thus is not directly subject to review by antitrust authorities in the United States, authorities could open an investigation if they believe the deal was designed to circumvent regulatory requirements or threaten competition.
Reports suggest that the deal was approached cautiously to avoid any suspicions, such as limiting competitors' access to Scale's services or giving Meta an inside look at its rivals' operations. Google revealed that it decided to cut ties with Scale after the announcement of the Meta deal, and other companies are considering similar steps.
Mixed reactions and fears of monopolization
A spokesperson for Scale AI stated that the company's business, which includes collaborations with major companies and governments, remains strong, emphasizing its commitment to protecting customer data, and the company declined to comment on Google's position.
Two informed sources confirmed that Wang, the young CEO (28 years old), will remain a member of Scale's board of directors, with appropriate restrictions on his access to information.
Trump's administration and the regulatory climate for artificial intelligence
Observers believe that major tech companies consider the regulatory environment during Donald Trump's presidency to be more flexible, especially regarding partnerships in the field of artificial intelligence.
William Kovacic, director of the Competition Law Center at George Washington University, stated: 'Trump does not want to regulate the evolution of AI, but he simultaneously doubts the dominance of major tech companies.'
He pointed out that this trend may prompt the administration to closely monitor such deals without direct intervention for now.
Stalled investigations into similar deals
The Federal Trade Commission had opened investigations into similar acquisition deals during the previous administration of President Joe Biden, including Amazon's deal with Adept and Microsoft's purchase of assets from Inflection AI for $650 million, where the latter acquired the company's models and key employees.
However, these investigations have not yet led to actual actions, as the Amazon deal closed without intervention, and the Trade Commission is still studying Microsoft's situation more than a year after opening the investigation.
