Latest news with #Outlier
Indian Express
13 hours ago
- Business
- Indian Express
Meta poaches 28-year-old Scale AI CEO after taking multibillion dollar stake in startup
Facebook-owner Meta has invested in Scale AI in a deal that values the data-labeling startup at $29 billion and brings in its 28-year-old CEO, Alexandr Wang, to play a prominent role in the tech giant's artificial intelligence strategy. Meta will take a 49% stake for $14.3 billion, according to two sources familiar with the matter. '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,' Meta said in a statement that did not disclose financial terms. The main driver for Meta's substantial investment in Scale was to secure Wang to lead its new superintelligence unit, according to a separate source briefed on the discussions. The sources were not authorised to speak to media and declined to be identified. Meta didn't immediately respond to a request for comment. Wang, who was born in Los Alamos, New Mexico, to Chinese immigrant physicists, dropped out of MIT to co-found Scale. He was quickly lauded as one of Silicon Valley's most promising entrepreneurs, raising funding from blue-chip venture capital firms and achieving billionaire status in his 20s. He has also cultivated relationships with top tech executives such as OpenAI CEO Sam Altman and has since leveraged his influence to build connections in Washington D.C., testifying in front of Congress and securing the federal government as a big client. Meta, once recognized as a leader in open-source AI models, has suffered from staff departures and has postponed the launches of new open-source AI models that could rival competitors like Google, OpenAI, and China's DeepSeek. By poaching Wang, who does not come from a research background but has built a major AI business, Meta CEO Mark Zuckerberg is betting that Meta's AI efforts can be turned around by an adept business leader more in the mold of Altman than the research scientists at the helm of most competing labs. Scale said the deal values it at $29 billion and that its chief strategy officer, Jason Droege, will serve as its interim CEO. The social media giant doesn't plan to take a board seat in Scale, one of the sources added. A few employees from Scale, a company with 1,500 people, will join Wang in moving to Meta, Wang said in a note to employees on Thursday. Wang will remain on Scale's board. The cash investment would rank as Meta's second-largest ever after its $19 billion buyout of WhatsApp. It's unclear if this deal will come under any regulatory scrutiny. Meta has been sued by the U.S. Federal Trade Commission, which alleges it illegally acquired Instagram and WhatsApp to stifle competition. Founded in 2016, Scale provides vast amounts of accurately labeled data, which is pivotal for training sophisticated tools like OpenAI's ChatGPT. To do so, Scale set up subsidiary platforms such as Remotasks and Outlier to recruit and manage gig workers who manually label the data. It was valued at nearly $14 billion in a May 2024 funding round that included Nvidia, Amazon and Meta among its backers. Despite the large investment sum, the deal might not be all good for Scale. Many AI labs that are clients of Scale could decide to discontinue using its services if they were to worry, that since Wang still sits on Scale's board, Meta might obtain an inside track into rivals' priorities around data. Still, the deal is a win for early venture capital investors in Scale, such as Accel and Index Ventures, who can cash out half of their stake in the startup.
Economic Times
a day ago
- Business
- Economic Times
From Scale AI to Meta's AI boss: Who is Alexandr Wang, the 28-year-old MIT dropout gunning for OpenAI?
Meta Platforms is investing $15 billion for a 49% stake in Scale AI, a data-labelling startup now valued at $29 billion. The deal, confirmed by both companies on Thursday, marks a strategic shift for Meta as it races to reclaim its edge in artificial intelligence. The main draw? Alexandr Wang. The 28-year-old MIT dropout and CEO of Scale AI will join Meta to lead its newly-formed superintelligence team. This unit is tasked with building systems that push beyond today's artificial intelligence capabilities—towards artificial superintelligence (ASI).'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,' Meta said in a statement, as reported by Meta will not take a seat on Scale AI's board, the deal will see a few of Scale's 1,500 employees join Wang at Meta. Wang will remain a board member at Scale. Wang's background is far from typical. Born in Los Alamos, New Mexico to Chinese immigrant physicists, he entered the tech world early. He worked at Quora before dropping out of MIT after his freshman year. In 2016, alongside Lucy Guo, he co-founded Scale AI via startup accelerator Y Combinator.'Long-term, we want to power any human-powered process for any company,' Wang told the YC blog in just 24, he became the world's youngest self-made billionaire. Though Guo exited the startup a few years later, Wang built Scale AI into a data backbone for many of the world's leading AI raised over $680 million, including $100 million from Peter Thiel's Founders Fund. Today, Forbes estimates his personal net worth at $3.6 billion.'Focus on building the business and then the rest will kind of take care of itself,' he told Business Insider in 2020. Wang has become a familiar face in Washington, frequently engaging with lawmakers on the national security implications of AI. In 2018, a visit to China convinced him that America's future in warfare would hinge on AI leadership. 'The race for AI global leadership is well underway, and our nation's ability to efficiently adopt and implement AI will define the future of warfare,' Wang said in public in 2016, Scale AI helps train frontier AI models by offering large volumes of labelled data. Its platforms—Remotasks and Outlier—enlist gig workers to annotate massive datasets. This labelled data is critical for training AI systems like ChatGPT. The company began by serving autonomous vehicle clients such as Toyota, Honda, and Waymo. It has since expanded to support OpenAI, Microsoft, and even the US government, which uses its services to analyse satellite imagery from Ukraine. Scale's revenues in 2024 hit $870 million and are projected to more than double to $2 billion in 2025. Bloomberg reports this would push its valuation to $25 the startup's rapid ascent hasn't been without controversy. Investigations have highlighted harsh working conditions for its offshore gig workforce, who are paid as little as $1 per hour. These workers are primarily based in countries such as Kenya, the Philippines, and isn't just an investment—it's a statement. With this deal, Meta is signalling a departure from the traditional research-led approach it once challenges, including high-profile exits and delayed model releases, have weighed on Meta's AI progress. The company's LLaMA open-source models were meant to disrupt the industry, but lukewarm adoption and team churn have slowed long-time AI chief, Yann LeCun, remains a key figure. Yet his scepticism about large language models (LLMs) as a path to artificial general intelligence (AGI) has reportedly diverged from mainstream Silicon Valley bringing in Wang—who built Scale into a billion-dollar business without a research pedigree—CEO Mark Zuckerberg is now betting on a different kind of leadership. A business mind like Sam Altman's, rather than a research is reportedly luring talent from OpenAI and Google with seven to nine-figure pay packages to staff its 50-person superintelligence lab.'This was a deeply unique moment': Wang steps into new roleIn a message to employees, Wang acknowledged the emotional weight of leaving Scale.'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,' he assured Scale's staff that proceeds from Meta's investment would go to shareholders and vested equity Meta, Wang will lead an ambitious mission: to build AI that not only catches up to its rivals but moves beyond them. Superintelligence remains a theoretical concept—but with Wang at the helm, Meta is making a $15 billion wager that it can become reality.
Time of India
a day ago
- Business
- Time of India
From Scale AI to Meta's AI boss: Who is Alexandr Wang, the 28-year-old MIT dropout gunning for OpenAI?
Meta Platforms is investing $15 billion for a 49% stake in Scale AI , a data-labelling startup now valued at $29 billion. The deal, confirmed by both companies on Thursday, marks a strategic shift for Meta as it races to reclaim its edge in artificial intelligence. The main draw? Alexandr Wang . The 28-year-old MIT dropout and CEO of Scale AI will join Meta to lead its newly-formed superintelligence team. This unit is tasked with building systems that push beyond today's artificial intelligence capabilities—towards artificial superintelligence (ASI). '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,' Meta said in a statement, as reported by Reuters. Though Meta will not take a seat on Scale AI's board, the deal will see a few of Scale's 1,500 employees join Wang at Meta. Wang will remain a board member at Scale. Live Events Who is Alexandr Wang? The man Meta is betting on Wang's background is far from typical. Born in Los Alamos, New Mexico to Chinese immigrant physicists, he entered the tech world early. He worked at Quora before dropping out of MIT after his freshman year. In 2016, alongside Lucy Guo, he co-founded Scale AI via startup accelerator Y Combinator . 'Long-term, we want to power any human-powered process for any company,' Wang told the YC blog in 2016. At just 24, he became the world's youngest self-made billionaire. Though Guo exited the startup a few years later, Wang built Scale AI into a data backbone for many of the world's leading AI systems. He's raised over $680 million, including $100 million from Peter Thiel's Founders Fund. Today, Forbes estimates his personal net worth at $3.6 billion. 'Focus on building the business and then the rest will kind of take care of itself,' he told Business Insider in 2020. Wang has become a familiar face in Washington, frequently engaging with lawmakers on the national security implications of AI. In 2018, a visit to China convinced him that America's future in warfare would hinge on AI leadership . 'The race for AI global leadership is well underway, and our nation's ability to efficiently adopt and implement AI will define the future of warfare,' Wang said in public testimony. Scale AI: The silent engine of the AI boom Founded in 2016, Scale AI helps train frontier AI models by offering large volumes of labelled data. Its platforms—Remotasks and Outlier—enlist gig workers to annotate massive datasets. This labelled data is critical for training AI systems like ChatGPT. The company began by serving autonomous vehicle clients such as Toyota, Honda, and Waymo. It has since expanded to support OpenAI , Microsoft, and even the US government, which uses its services to analyse satellite imagery from Ukraine. Scale's revenues in 2024 hit $870 million and are projected to more than double to $2 billion in 2025. Bloomberg reports this would push its valuation to $25 billion. Yet the startup's rapid ascent hasn't been without controversy. Investigations have highlighted harsh working conditions for its offshore gig workforce, who are paid as little as $1 per hour. These workers are primarily based in countries such as Kenya, the Philippines, and India. Meta's AI gamble: Wang over research orthodoxy This isn't just an investment—it's a statement. With this deal, Meta is signalling a departure from the traditional research-led approach it once championed. Internal challenges, including high-profile exits and delayed model releases, have weighed on Meta's AI progress. The company's LLaMA open-source models were meant to disrupt the industry, but lukewarm adoption and team churn have slowed momentum. Meta's long-time AI chief, Yann LeCun, remains a key figure. Yet his scepticism about large language models (LLMs) as a path to artificial general intelligence (AGI) has reportedly diverged from mainstream Silicon Valley thinking. By bringing in Wang—who built Scale into a billion-dollar business without a research pedigree—CEO Mark Zuckerberg is now betting on a different kind of leadership. A business mind like Sam Altman's, rather than a research purist. Meta is reportedly luring talent from OpenAI and Google with seven to nine-figure pay packages to staff its 50-person superintelligence lab. 'This was a deeply unique moment': Wang steps into new role In a message to employees, Wang acknowledged the emotional weight of leaving Scale. '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,' he wrote. He assured Scale's staff that proceeds from Meta's investment would go to shareholders and vested equity holders. At Meta, Wang will lead an ambitious mission: to build AI that not only catches up to its rivals but moves beyond them. Superintelligence remains a theoretical concept—but with Wang at the helm, Meta is making a $15 billion wager that it can become reality.
Mint
a day ago
- Business
- Mint
Mark Zuckerberg-led Meta bets big on Scale AI: Who is Alexander Wang, the 28-year-old MIT dropout behind the startup?
Meta Platforms has invested in US-based firm Scale AI in a deal that values the data-labelling startup at $29 billion. After the deal, Jason Droege will serve as the interim CEO of the AI firm. Meta's stake in the startup will give its 28-year-old CEO, Alexandr Wang, an opportunity to play a prominent role in the tech giant's artificial intelligence strategy. The Facebook owner will reportedly take a 49 per cent stake for $14.3 billion. "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," Meta said in a statement reported by Reuters. The main driver behind Meta's huge investment in Scale AI was to secure Wang to lead its new superintelligence unit, according to information given to Reuters. Wang was born in Los Alamos, New Mexico. His parents were Chinese immigrants who worked as physicists. The CEO dropped out of the prestigious MIT to co-found Scale. He was quickly recognised as one of Silicon Valley's most promising entrepreneurs, who successfully raised capital from blue-chip venture capital firms and achieved billionaire status in his 20s, Reuters said. Meta, who was once a leader in open-source AI models, has been postponing the launches of new open-source AI models due to staff departures. These AI models are important to rival competitors like Google, OpenAI, and China's DeepSeek, reported Reuters. By luring Wang into joining the tech giant, who does not come from a research background, yet built a major AI business, Meta CEO Mark Zuckerberg is betting that Meta's AI efforts can be turned around by an adept business leader more in the mold of Altman than the research scientists at the helm of most competing labs, reported Reuters. Meta doesn't plan to take a board seat in Scale, as people with information told Reuters. A few employees from Scale, among a team of 1,500 people, will move to Meta with Wang as he will continue to serve on the Scale's board. However, it's still unclear if this deal will come under any regulatory scrutiny. Meta has earlier been sued by the US Federal Trade Commission, which alleged that it illegally acquired Instagram and WhatsApp to reduce competition. The startup was founded in 2016 as a platform that provides vast amounts of accurately labelled data, which is crucial for training sophisticated tools like OpenAI's ChatGPT. To do so, Scale set up subsidiary platforms such as Remotasks and Outlier to recruit and manage gig workers who manually label the data, according to Reuters. Before Meta bought a stake, it was valued at nearly $14 billion in a May 2024 funding round that included Nvidia, Amazon and Meta among its backers.
Int'l Business Times
a day ago
- Business
- Int'l Business Times
Meta Invests $14.3B For 49% Stake In Scale AI To Boost AI Capabilities
Meta has completed a $14.3 billion investment in Scale AI, acquiring a 49% stake in the startup and valuing it at over $29 billion. This deal marks Meta's second-largest investment to date, following its $19 billion acquisition of WhatsApp in 2014, and deepens the strategic partnership between the two companies, according to Reuters. Following the investment, Scale AI appointed Jason Droege as interim CEO, succeeding co-founder Alexandr Wang. Wang has joined Meta to lead a new team focused on artificial general intelligence (AGI) and support Meta's broader AI initiatives, while maintaining a seat on Scale AI's board. Mark Zuckerberg personally facilitated Wang's move, underscoring Meta's determination to regain ground in the competitive AI landscape. "Meta's investment acknowledges Scale's achievements and reinforces our shared belief that the future of AI is limitless," said Wang, as reported by the Financial Times. The partnership will leverage Scale AI's expertise in data labeling—a crucial process that categorizes images and text for training AI models—to accelerate the development of large language models. Scale AI currently provides labeled training data to major clients like Microsoft, OpenAI, General Motors, and Toyota through platforms such as Remotasks and Outlier. The investment arrives as Meta faces mounting pressure to advance its AI capabilities amid stiff competition from Google, Microsoft, OpenAI, and Anthropic. Meta has announced that it will reveal more details about the new AI team and upcoming projects in the coming weeks.
