Meta is investing $14.3 billion to acquire a 49% stake in Scale AI and bring on its CEO, Alexandr Wang, in a major push to strengthen its artificial intelligence efforts. Wang will remain on Scale’s board while leading a newly formed AI lab at Meta focused on developing advanced AI, or “superintelligence.” He will report directly to Meta CEO Mark Zuckerberg.
This strategic move follows the underwhelming launch of Llama 4, Meta’s AI model, which faced repeated delays and failed to meet expectations. Meta was also accused of manipulating rankings to make Llama 4 appear stronger than it was. The company has yet to release Llama 4 Behemoth, its most advanced version teased earlier this year.
Zuckerberg has been aggressively recruiting talent to rebuild Meta’s AI credibility. He’s contacted researchers directly—sometimes through cold outreach—and offered large compensation packages to lure them from rivals like Google. With Wang on board, Meta aims to reclaim ground lost to AI leaders such as OpenAI, Anthropic, and DeepSeek.
Scale AI, known for helping train AI systems by labeling large datasets, has worked with major players including Google and OpenAI. Much of its workforce operates outside the U.S., providing low-cost labor crucial for AI development. Following Wang’s departure to Meta, Scale has named its former strategy chief, Jason Droege, as interim CEO.
Wang, once hailed as the youngest self-made billionaire, told Scale employees that Meta’s investment would reward current shareholders and equity holders while allowing them to stay involved in future growth.
This partial acquisition mirrors a broader trend in Big Tech, where companies invest in promising startups to gain access to talent without triggering antitrust issues. Although Meta will hold non-voting shares, regulators are still expected to review the deal closely.
Scale has also expanded into government contracts, including a groundbreaking AI partnership with the U.S. Department of Defense and a recent five-year deal with Qatar. Meanwhile, Meta remains entangled in a federal antitrust case that could lead to the company being broken up, further raising the stakes for its AI ambitions.
