Meta Bets Big on AI with $14.3 Billion Stake in Scale AI, Taps Alexandr Wang to Lead New Lab
In a strategic move to assert itself in the rapidly intensifying global AI race, Meta has announced a $14.3 billion investment in Scale AI, securing a 49% stake in the startup. This major push also includes bringing on board 28-year-old Scale AI CEO Alexandr Wang to lead a newly established AI lab at Meta, a development that signals a reboot of the company's AI ambitions.
Wang, who will now report directly to Meta CEO Mark Zuckerberg, is expected to play a pivotal role in shaping the company's future in artificial intelligence. He will continue serving on Scale AI's board of directors, while Scale's former Chief Strategy Officer, Jason Droege, steps up as interim CEO. Meta has not opted for a full acquisition, instead taking non-voting shares—likely a tactical decision to sidestep regulatory challenges, given the ongoing antitrust scrutiny the company faces in the U.S.
This move comes as Meta looks to regain momentum following the lukewarm reception of its latest large language model, Llama 4. Despite much anticipation, the rollout of Llama 4, particularly its most advanced variant, Llama 4 Behemoth, failed to match up to competitors such as OpenAI's GPT, Google's Gemini, and Anthropic's Claude. The underperformance, coupled with delays and controversy—including allegations of meddling with public AI model rankings—has pushed Meta to take decisive steps to revamp its AI strategy.
Zuckerberg has reportedly been personally involved in this AI overhaul, directly reaching out to researchers at rival firms with lucrative offers in a bid to assemble a dream team capable of delivering next-generation general intelligence systems. These recruitment efforts, often executed through cold emails and WhatsApp messages, are part of a broader plan to elevate Meta's in-house AI capabilities.
Scale AI, the company founded by Wang, is a quiet yet powerful player in the AI industry. It provides annotated data crucial for training AI models, serving tech giants such as OpenAI, Google, and Anthropic. Much of this work is performed in low-cost labour markets, making it both efficient and essential. Beyond tech, Scale AI has been expanding into government partnerships, including a key deal with the U.S. Department of Defense and a five-year agreement with Qatar to supply AI technologies.
In a memo to Scale employees, Wang described Meta's investment as a significant milestone. He reassured the team that shareholders and vested equity holders would see benefits from the deal, while still participating in the company's future growth.
Meta, meanwhile, claims that its in-house assistant, Meta AI, now reaches over a billion users across Facebook, Instagram, and WhatsApp. A standalone Meta AI app also briefly topped app store charts, though its popularity waned quickly.
With Wang at the helm of Meta's new AI lab, the company aims to accelerate its pursuit of "superintelligence." More updates about the lab's mission and goals are expected in the coming weeks. For now, the $14.3 billion investment marks one of Meta's most aggressive AI moves to date.
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