Meta Eyes Major Stake in Scale AI With $10 Billion Deal in the Works

Meta Platforms is preparing to make its most significant outside investment yet, with talks underway to inject over $10 billion into artificial intelligence startup Scale AI, according to people familiar with the matter.

If finalized, the deal could become one of the largest private company funding rounds in history.

Although details are still being finalized and could change, the investment highlights Meta's push to become a major player in the growing AI arms race. Meta and Scale AI both declined to comment on the possible deal.

Founded in 2016, Scale AI helps train AI models by cleaning and labeling vast amounts of data, including text and images.

Led by CEO Alexandr Wang, the company partners with major tech firms like Microsoft and OpenAI.

In 2024, Scale was valued at approximately $14 billion, and recent reports suggest it may now be worth up to $25 billion, according to SCMP.

This deal would represent a new strategic direction for Meta. Unlike other tech giants, such as Microsoft, Amazon, and Google, which have invested billions in AI startups like OpenAI and Anthropic, Meta has primarily relied on its in-house research teams.

But now, CEO Mark Zuckerberg is changing course, making AI Meta's top priority.

Meta Commits $65B to AI as Llama Chatbot Surpasses 1B Users

Earlier in 2025, Zuckerberg announced that Meta plans to invest up to $65 billion in AI projects.

A key focus for Meta is its Llama project, an AI chatbot that is used by more than 1 billion people monthly on Facebook, Instagram, and WhatsApp.

While companies like Microsoft offer cloud services to support their AI investments, Meta doesn't run a cloud platform, so it's unclear what form its support for Scale will take.

According to Fortune, the scale's growth has been rapid. Last year, the project earned $870 million and aims to more than double that revenue to $2 billion in 2025.

Its role in the AI ecosystem is crucial, as it prepares the data that helps AI systems learn and improve.

The two companies are already collaborating on Defense Llama, an AI program designed for military use.

Meta has recently partnered with Anduril Industries, a defense technology firm, to develop new tools for the US military, including an AI-powered helmet.

Scale also signed a significant contract with the US Department of Defense this year. The company said the work marked "a significant milestone in military advancement."

Originally published on vcpost.com