Meta Backs Scale AI, Boosting its US$29 billion Valuation

Meta Platforms is investing in Scale AI, boosting the latter’s company value to over US$29 billion. The agreement not only represents a capital injection but also a substantial expansion of the commercial relationship between the two companies, which will enable the acceleration of Scale AI’s data solutions. 

"The new investment from Meta and our expanded commercial agreement are a testament to the work and dedication of the entire Scale team, and to the tremendous potential ahead," says Jason Droege, interim CEO, Scale AI. "Scale has accelerated AI development because we do not just adapt to change — we drive it. We have built the most robust foundation to address AI data challenges and push the boundaries of what is possible."

The transaction underscores the growing importance of high-quality data in developing and deploying advanced AI systems. This investment comes at a time when major technology companies are increasing their focus and resources in the AI sector. For Meta, securing preferential access and a closer collaboration with a leading data provider like Scale AI is a strategic move to strengthen its AI capabilities, reports TechChrunch. Scale AI, in turn, receives not only validation of its business model and technology through the US$29 billion valuation, but also the resources to continue expanding and innovating.

The funds from Meta’s investment will be used to accelerate innovation and strengthen strategic partnerships with other clients. A portion of the proceeds will be distributed among Scale AI’s shareholders and vested equity holders, offering significant liquidity without requiring them to give up future participation in the company’s success. After the investment, Meta will hold a minority stake in Scale AI’s outstanding equity, ensuring that Scale AI retains operational independence and remains committed to serving a broad range of clients, including AI labs, multinational corporations, and governments.

Alexandr Wang, Founder, Scale AI, will join Meta to contribute to its AI initiatives. Scale AI says it is committed to safeguarding customer data and collaborating with stakeholders across the ecosystem to deliver robust technological and data-driven solutions.