Meta finalises investment in Scale AI, valuing startup at $29 billion
Synopsis
Meta has finalised an investment of $14.3 billion in Scale AI, valuing the startup at over $29 billion. Scale CEO Alexandr Wang will join Meta's new AGI-focused unit, with Jason Droege as interim CEO. The deal, Meta's second-largest ever, strengthens its AI ambitions and offers insights into rival labs' data strategies.
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The Hindu
4 hours ago
- The Hindu
Meta's data broker
Alexandr Wang, a 28-year-old entrepreneur, has emerged as a key player in the rapidly evolving landscape of artificial intelligence. His company, Scale AI, has strategically positioned itself at the forefront of this transformation. Founded in 2016 as a data labelling company for autonomous vehicles, Scale AI quickly gained prominence. It secured partnerships with major tech giants such as OpenAI, Microsoft, Nvidia, and even the U.S. government. In a significant development, Meta Platforms has invested $14.3 billion to acquire a 49% stake in Scale AI. This acquisition marks a pivotal moment for the company, which now specialises in data curation and intelligent dataset management. As part of this deal, Mr. Alexandr is expected to assume a leadership role within Meta, leading the company's new 'superintelligence' research lab. This move is a much-needed talent refresh and reputation boost for Meta, which has been losing AI researchers and struggling with its Llama 4 launch. The company is bleeding AI talent as researchers are leaving for rival French startup Mistral. Meta's investment in AI is a significant move, and it aligns with the strategies employed by other tech giants. For instance, Microsoft has backed OpenAI, while Amazon supports Anthropic. These partnerships highlight the crucial role of specialised AI firms in the broader ecosystem. However, the Meta-Scale AI deal has sparked discussions about its implications. Some believe it represents an 'exit' for Scale AI, potentially impacting its ability to serve Meta's competitors like Google and OpenAI. Others question whether it's a strategic partnership to enhance Scale AI's capabilities while bolstering Meta's AI standing, or if it's a talent acquisition move by Meta. The deal's structure, with Mr. Alexandr reportedly retaining voting control over Scale despite his move to Meta, indicates a complex arrangement aimed at balancing these interests. Regardless, this move underscores Meta's commitment to leading the AI race. Mr. Alexandr, a vocal advocate for the strategic importance of AI for the U.S. as a matter of national security, was shaped by his upbringing in Los Alamos, New Mexico, the birthplace of the atomic bomb. In a TED Talk, he drew parallels between the transformative impact of the atomic bomb on past warfare and the current potential of AI to redefine global power. AI arms race Mr. Alexandr asserts that, as seen in the Second World War with the atomic bomb, the country that rapidly and effectively integrates new technology into warfare emerges victorious. He warns that the U.S. risks falling behind in the AI arms race, particularly against China, which he claims is ahead in accumulating the vast datasets necessary to develop powerful AI models. Mr. Alexandr has urged the U.S. government to establish a national data reserve, treating data as a strategic national resource akin to petroleum. Scale AI has actively pursued defence contracts, collaborating with the U.S. Department of Defense, Air Force, and the Army to test and evaluate large language models for military purposes. Mr. Alexandr views this work as a 'moral imperative', especially after witnessing China's advances in AI for surveillance and military applications. Mr. Alexandr predicts that AI will dominate warfare within the next decade. He emphasises that 'data will become a new kind of ammunition in the era of AI warfare'. This underscores his call for robust investment in data infrastructure, not only for military superiority but also as a deterrent, akin to nuclear capabilities. For Mr. Alexandr and Scale AI, the mission is clear: to provide the foundational data layer that accelerates AI development across all sectors, including national security. While Meta's significant investment marks a new chapter for Scale AI, potentially altering its client dynamics, Mr. Alexandr's core message about the paramount importance of data and the strategic implications of AI remains unchanged.
Time of India
5 hours ago
- Time of India
Started with only Rs 1700, IITian and tech titan Nikesh Arora rose to outearn Mark Zuckerberg and Sundar Pichai
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Time of India
6 hours ago
- Time of India
Kirti Ganorkar: Why the veteran insider is the right dose for Sun Pharma
Mumbai: For nearly thirty years, Kirti Ganorkar quietly stood at Sun Pharma as a rock, much like his astute boss Dilip Shanghvi , the founder of Sun Pharma. Steadfastly Shanghvi steered Sun Pharma from a small India-focused branded generic player to one that is rapidly emerging as a global specialty drugs company. From September 1, Kirti Ganorkar (58), a chemical engineer and a diehard cricket aficionado, will helm India's largest drugmaker as its managing director, while Shanghvi will continue in the role of executive chairman. In a June 13 statement, Sun Pharma said this marks the culmination of a structured and forward-looking succession planning process, underscoring the organisation's commitment to leadership continuity and strategic governance. For Ganorkar's elevation, the timing is crucial given the global scale of Sun Pharma's operations. It includes a growing and challenging business environment in the US, Europe and a range of emerging markets while keeping Sun Pharma at the top of the intensely competitive home market, India. For FY2025, Sun Pharma had sales of ₹52,041 crore, a 9% growth over the previous year, while its net profit stood at ₹11,984 crore, up 19%. Of which, Sun Pharma's global specialty products sales stood at $1.21 billion (₹10,334 crore), up 17.1%, and accounted for 19.7% of FY25 sales. Alone, Sun Pharma's India sales contribute over 32% of its global revenues. When Ganorkar made his move from German Remedies (acquired later by Zydus Lifesciences in 2001), a united entity for a group of German pharma companies and joined Sun Pharma in 1996 as an executive assistant to Shanghvi, the Indian pharma market was very different. Sun Pharma was at a fraction of its present size. The market was poised for a leap in sales of drugs for heart ailments, diabetes, neurology, and cancer, the segments that have been the primary focus for the company. Now, the dynamics have changed with almost every large Indian company showing prowess of deep reach and scientific expertise as they try to outclass others from in-licensing innovative products to launching their own. Industry experts, who follow Sun Pharma closely, say Ganorkar has a tough task ahead, but the established strength of the company comes as a big help. To succeed Dilip Shanghvi, known for his calculated yet bold moves, Ganorkar will need to combine all his experience. He has held diverse roles at Sun Pharma from business development, marketing, M&A, new product introductions, project management, to intellectual property litigation. An avid cricket follower, Ganorkar is the perfect all-rounder that Shanghvi has chosen. In the new innings, he must demonstrate the skills of MS Dhoni as a cool captain while showing the aggression of Virat Kohli. "Can he be good in the test match format and T20. That is the key," says a senior industry veteran, who was pleasantly surprised to see Ganorkar's new position. Economic Times WhatsApp channel )
