8 hours ago
Meta in talks for Scale AI investment that could top $12.9 billion
This would be Meta's biggest ever external AI investment, and a rare move for the company. PHOTO: REUTERS
NEW YORK – Facebook parent Meta Platforms is in talks to make a multibillion-dollar investment into artificial intelligence start-up Scale AI, according to people familiar with the matter.
The financing could exceed US$10 billion (S$12.9 billion) in value, some of the people said, making it one of the largest private company funding events of all time.
The terms of the deal are not finalised and could still change, according to the people.
A representative for Scale did not immediately respond to requests for comment. Meta declined to comment.
Scale AI, whose customers include Microsoft and OpenAI, provides data labeling services to help companies train machine-learning models and has become a key beneficiary of the generative AI boom.
The start-up was last valued at about US$14 billion in 2024, in a funding round that included backing from Meta and Microsoft. Earlier this year, Bloomberg reported that Scale was in talks for a tender offer that would value it at US$25 billion.
This would be Meta's biggest ever external AI investment, and a rare move for the company. The social media giant has before now mostly depended on its in-house research, plus a more open development strategy, to make improvements in its AI technology. Meanwhile, Big Tech peers have invested heavily: Microsoft has put more than US$13 billion into OpenAI while both and Alphabet have injected billions into rival Anthropic.
Part of those companies' investments have been through credits to use their computing power. Meta doesn't have a cloud business, and it's unclear what format Meta's investment will take.
Chief executive officer Mark Zuckerberg has made AI Meta's top priority, and said in January that the company would spend as much as US$65 billion on related projects in 2025.
The company's push includes an effort to make Llama the industry standard worldwide. Meta's AI chatbot – already available on Facebook, Instagram and WhatsApp – is used by 1 billion people per month.
Scale, co-founded in 2016 by CEO Alexandr Wang, has been growing quickly: The start-up generated revenue of US$870 million last year and expects sales to more than double to US$2 billion in 2025, Bloomberg previously reported.
Scale plays a key role in making AI data available for companies. Because AI is only as good as the data that goes into it, Scale uses scads of contract workers to tidy up and tag images, text and other data that can then be used for AI training.
Scale and Meta share an interest in defense tech. Last week, Meta announced a new partnership with defense contractor Anduril Industries to develop products for the US military, including an AI-powered helmet with virtual and augmented reality features. Meta has also granted approval for US government agencies and defense contractors to use its AI models.
The company is already partnering with Scale on a program called Defense Llama – a version of Meta's Llama large language model intended for military use.
Scale has increasingly been working with the US government to develop AI for defense purposes. Earlier in 2025 the start-up said it won a contract with the Defense Department to work on AI agent technology. The company called the contract 'a significant milestone in military advancement.' BLOOMBERG
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