Meta scales up AI push
The Big Story
Meta, the parent company of Facebook and Instagram, is investing a 'significant' amount in Scale AI and hiring the artificial intelligence (AI) company's CEO, Alexandr Wang.
© Thibault Camus, Associated Press
The investment, reportedly worth about $14 billion, will bring the 28-year-old tech founder on board to help with Meta's 'superintelligence efforts.'
'Meta has finalized our strategic partnership and investment in Scale AI,' Meta said in a statement. 'As part of this, we will deepen the work we do together producing data for AI models and Alexandr Wang will join Meta to work on our superintelligence efforts.'
Scale AI, founded by Wang in 2016, provides data services for AI companies. Meta's massive investment values the firm at more than $29 billion.
Wang noted in a message to staff that he would 'never leave Scale behind' and will remain a member of the board of directors, 'continuing to support Scale's mission and long-term vision.'
Jason Droege, Scale AI's chief strategy officer, will take over as interim CEO, according to a company press release.
When this opportunity first presented itself, my immediate reaction was uncertainty,' Wang said in the message posted to Threads on Thursday.
'The idea of not being a Scalien was, frankly, unimaginable. But as I spent time truly considering it, I realized this was a deeply unique moment, not just for me, but for Scale as well.'
'As you've probably gathered from recent news, opportunities of this magnitude often come at a cost,' Wang added. 'In this instance, that cost is my departure.'
The new partnership comes as Meta seeks to build out a superintelligence lab, focused on creating AI that is smarter than humans — a step further than the artificial general intelligence (AGI) sought by many tech and AI companies, according to The New York Times.
Welcome to The Hill's Technology newsletter, we're Miranda Nazzaro and Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.
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Minnesota lawmakers approve social media mental health warning measure
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The Refresh
News we've flagged from the intersection of tech and other topics:
Crypto Corner
SEC withdraws more than a dozen Biden-era rules
© Andrew Harnik, Associated Press
The Securities and Exchange Commission (SEC) withdrew 14 Biden-era proposals Thursday, including two that faced pushback from the crypto industry.
The agency pulled a proposed rule from 2023 that sought to establish stricter requirements for investment advisors holding crypto assets for their clients.
It also withdrew a 2022 proposal that would have expanded the definition of exchange systems to encompass those trading crypto assets, including decentralized finance systems.
Former acting SEC Chair Mark Uyeda previously indicated in March that he was considering scrapping both crypto-related rules, as he moved to quickly reshape the agency's approach to the industry.
Under his leadership, the SEC dropped numerous lawsuits against major crypto firms, including Coinbase, Kraken and Ripple.
Since Paul Atkins was confirmed as chair, the agency has also dismissed its case against the crypto exchange Binance.
House Financial Services Chair French Hill (R-Ark.) on Friday touted the decision to withdraw the proposed rules put forward under former SEC Chair Gary Gensler.
'I commend the SEC's decision to withdraw several misguided Gensler-era proposed rulemakings,' he said in a statement. 'For too long, consumers and financial institutions have faced unnecessary burdens imposed by overreaching federal regulators.'
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NEW YORK (AP) — More than 1.15 million power banks are under recall across the U.S. after some fires and explosions were reported by consumers. According to a Thursday notice from the U.S. Consumer Product Safety Commission, electronics maker Anker Innovations is recalling certain 'PowerCore 10000' power banks because the lithium-ion battery inside can overheat. An overheating battery can lead to 'melting of plastic components, …
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An Open Letter to the President: Addressing our Debt
Donald J. TrumpThe Mar-a-Lago Club1100 South Ocean BoulevardPalm Beach, Florida Dear President Trump: I voted for you in all three of your presidential campaigns. The first time, I cast my vote with cautious optimism. The third time, with enthusiasm. And I contributed financially to your campaign. You have achieved what few thought possible - a triumphant return, driven by a deep-seated belief among millions of Americans that only you can effectively challenge the entrenched political establishment. Your first 100 days were extraordinary, but if your presidency is to be remembered not just as bold but also historic, one challenge must rise above all others: - the national debt. The national debt, currently $37 trillion, is the result of pervasive fiscal irresponsibility, accumulated over many decades. Our annual interest payments now exceed $1trillion - more than we spend on our national defense. This is not just a financial burden. It is a threat to the survival of our country as a democratic republic. Without immediate, decisive action, the consequences are predictable: more credit downgrades, more increases in interest rates, and crippling obligations to service the debt. What would happen to our great country if annual interest payments exceeded not just our defense budget but also Social Security, Medicaid, and Medicare? Mr. President, if we are to remain a vibrant nation, this exploding national debt has to be attacked immediately and significantly. That will not happen without your leadership. Sadly, the Republican Party has shown that it is not a reliable ally. Even before Republicans regained control of the House, they held a secret vote. By a margin of 158 to 2 they brought back earmarks - the very same pork barrel spending practices that Speaker John Boehner put to bed. Since then, the Democratic Congress never dared to bring back earmarks. House Republicans did. The results were predictable, and immediate: $16 billion in earmarks. More than 7,500 pet projects. In the Senate, eight of the 12 largest earmarkers are Republicans. In the House, 48 of the top earmarkers are Republicans. Here are the largest earmarkers: Sen. Susan Collins of Maine (population 1.4 million) secured $870 million in earmarks. Sen. Lisa Murkowski grabbed $851.1 million in earmarks. Sen. Mitch McConnell took nearly $500 million in earmarks. My own congressman, Brian Mast, walked away with $437 million in earmarks. Obviously, eliminating pork barrel spending wont, by itself, address the structural problems in Washingtons budget process - or make the "big, beautiful bill" currently being debated in Congress deficit-neutral. But if members of Congress cant even control themselves, what kind of example do they set for the American people? How can politicians ask their fellow Americans to sacrifice when they wont do it themselves? Actions speak louder than words. Fiscal irresponsibility dominates the culture within Congress, within our government. That culture, obviously, will not change on its own. It can be changed. But only with your leadership. Mr. President, fortunately, today you have a tool to attack waste, fraud, duplication, and incompetence. Because of the cloud, Big Data, and the Freedom of Information Act, you can deliver every government expenditure to every citizens cell phone, iPad, and computer. You can bring a new era to government, i.e., transparency. Mr. President, you can be the launch pad for transparency. Imagine a government where every single taxpayer dollar that government spends is tracked and reported to the public. Imagine the cultural shift from secret votes, from wasteful spending to one where every government official knows their budgets will be scrutinized in detail. Mr. President, here are several all-encompassing, culture-changing, deficit-attacking actions you can announce tomorrow: Lead by example: Cut White House expenses by a defined percentage. Report the savings to the public every quarter. Challenge Congress: Ask every member to cut their office and committee budgets. Suggest at least 10%. Publish a quarterly report on every senator and representative. Eliminate pork-barrel projects: Call on Congress to abolish earmarks. Shine a light on every remaining earmarker until they fall in line. Mobilize the bureaucracy: Instruct all agencies to focus on rooting out waste, fraud, duplication, and incompetence, and report the progress quarterly. Say explicitly that you will monitor progress and report the bold and expose the complacent. Bringing transparency to government can do more than clean up wasted taxpayer dollars. It can rebuild trust. It can remind the American people that the government can still work for them. It will solidify your legacy as the chief executive who did not just talk about draining the swamp, you did it. Imagine our country if we did not have to spend $1 trillion each year on interest payments. That is the future Americans deserve. Mr. President, you have been given a historic mandate. You can leave office with a legacy as the president who did not just promise to "Make America Great Again," but who actually did it. America cannot be made great again without addressing the greatest threat to our countrys survival as a democratic republic - the exploding national debt. Respectfully, Thomas W. Smith Thomas W. Smith is the founder of Prescott Investors, Inc.
