Meta Invests $15 Billion in Scale AI Amid AI Model Struggles

Meta has made a significant move in the AI race by investing $15 billion in data-labeling startup Scale AI, valuing the company at $29 billion. The deal, which doubles Scale’s valuation from last year, underscores Meta’s efforts to strengthen its AI capabilities following the underperformance of its Llama 4 model on independent benchmarks.
Scale AI, which provides labeled training data to improve AI models, will expand its commercial relationship with Meta to accelerate the deployment of its data solutions. Meta will own 49% of Scale’s equity post-transaction, with proceeds distributed to Scale’s shareholders. Alexandr Wang, Scale’s co-founder and former CEO, will join Meta to work on its AI initiatives, while Jason Droege, a veteran tech executive, will lead Scale’s strategy.
This investment aligns with Meta CEO Mark Zuckerberg’s broader strategy to build a competitive edge in AI, including the recruitment of top talent. Meta has allocated the majority of its $72 billion capital expenditure for 2025 to data centers and servers, reflecting its commitment to advancing generative AI. However, the company faces challenges as its recent AI models have underperformed compared to rivals.
The deal highlights the growing importance of high-quality training data in the AI sector and the significant returns being realized by early investors in AI-related startups.

Published: 6/13/2025