Meta makes major investment in Scale AI, takes in CEO | The Straits ...
SAN FRANCISCO - Scale AI announced a major new investment by Meta late on June 12 that values the start-up at more than US$29 billion (S$37.2 billion) and puts its founder to work for the tech titan. Company founder and chief executive Alexandr Wang will join Meta to help with the tech giant’s own artificial intelligence (AI) efforts as part of the deal, according to the start-up. Meta was reportedly pouring more than US$10 billion into San Francisco-based Scale AI, and acquires its 28-year-old CEO amid fierce competition in the AI race with rivals such as OpenAI, Google, and Microsoft.
Strategic Partnership and Investment
“Meta has finalized our strategic partnership and investment in Scale AI,” a Meta spokesperson said in response to an AFP news agency inquiry. “As part of this, we will deepen the work we do together producing data for AI models and Alexandr Wang will join Meta to work on our superintelligence efforts.” Meta promised more details about the move in the coming weeks.
Scale AI's Growth and Achievements
Scale AI works with businesses, governments, and laboratories to exploit the benefits of AI, according to the start-up. “Meta’s investment recognizes Scale’s accomplishments to date and reaffirms that our path forward – like that of AI – is limitless,” Mr. Wang said in a release. Since Mr. Wang founded Scale AI in 2016, it has grown to comprise more than 1,500 people. He mentioned that a few other employees, whom he referred to as “Scaliens,” will go with him to work on Meta’s AI initiative.
Focus on National Security
Along with work that includes AI data, agents, and optimizing systems, Scale AI announced in 2024 that an AI model built on Meta’s Llama 3 model was customized for US national security missions, which include planning military or intelligence operations and understanding adversary vulnerabilities. Listed capabilities of “Defense Llama” include assessing scenarios and answering tactical questions such as how enemies might attack and how to effectively counter, according to Scale AI.
Future Plans and Collaboration
Scale AI will use the infusion of capital to accelerate innovation and strengthen partnerships, along with distributing proceeds to equity holders. Meta will hold a minority stake in Scale AI after the investment deal closes, but an exact figure was not revealed. Tech industry veteran and investor Jason Droege, a co-founder of the Uber Eats food delivery platform, will take over as chief of Scale AI, according to the company.
Meta chief Mark Zuckerberg recently touted his tech company’s generative AI assistant, telling shareholders it is used by a billion people each month across its platforms.
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