Meta Reportedly Finalizing $15B Stake in Scale AI, Taps Alexandr ...
Meta Platforms (META) is reportedly finalizing an investment of nearly $15 billion in Scale AI, a move that would mark the company’s largest external deal to date. The stock was up 0.5% in afternoon trade on Tuesday. According to a report by The Information, the deal would give Meta a 49% stake in the AI infrastructure company and deepen its push toward artificial general intelligence (AGI) in its largest external investment to date.
Leadership Transition at Meta
The report added that as part of the proposed agreement, Scale AI CEO Alexandr Wang would take a senior role at Meta, leading a new internal “superintelligence” lab focused on advancing AGI. Meta CEO Mark Zuckerberg is reportedly assembling a team of about 50 people to support the initiative, Bloomberg and The New York Times reported.
Deal Structure and Regulatory Considerations
While the investment would value Scale AI near $25 billion, which is nearly double its last private valuation, the deal’s structure may be crafted to avoid triggering additional regulatory scrutiny, The Information noted. Meta is already facing antitrust pressures tied to its past acquisitions of Instagram and WhatsApp.
Growth and Expectations
Scale AI, known for providing training data to OpenAI, Alphabet-backed Google (GOOGL/GOOG), Microsoft (MSFT), and Meta, generated $870 million in revenue in 2024 and reportedly expects to more than double that figure in 2025. The company is also planning a tender offer for employees and early investors based on the $25 billion valuation.
Challenges and Delays
The timing of the deal comes amid questions about Meta’s AI progress. Its latest Llama 4 models, released in April, reportedly failed to meet internal performance benchmarks, according to The Wall Street Journal. The release of Meta’s flagship “Behemoth” model has also been delayed due to capability concerns.
Meta’s stock has gained more than 18% this year and over 40% in the last 12 months.
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