Meta Invests $10 Billion in Scale AI, Enlists CEO Alexandr Wang to Advance Its AI Strategy

Meta has invested over $10 billion in Scale AI, now valued above $29 billion.

The deal brings visionary founder Alexandr Wang to Meta.

In a strategic move to bolster its position in the fast-evolving artificial intelligence landscape, Meta has made a major investment in San Francisco-based startup Scale AI, bringing its valuation to over $29 billion. As part of the high-profile deal, Scale AI’s 28-year-old founder and CEO, Alexandr Wang, will now join Meta to contribute to the company’s growing AI initiatives.

The announcement came late Thursday, with Scale AI confirming that the investment is “significant” and marks a new chapter for the startup. Though Meta will only acquire a minority stake, the deal signifies a deepening relationship between the two firms, particularly in AI research and development.

Wang’s transition to Meta is a key element of the agreement. The young tech prodigy, who founded Scale AI to bridge the gap between human values and machine intelligence, is now expected to channel his expertise into Meta’s artificial intelligence division, a space where competition has intensified among major players such as OpenAI, Google, and Microsoft.

“Meta’s investment recognizes Scale’s accomplishments to date and reaffirms that our path forward, like that of AI is limitless,” Wang said in an official statement. “Scale bridges the gap between human values and technology to help our customers realize AI’s full potential.”

Founded in 2016, Scale AI partners with businesses, government agencies, and research labs to provide cutting-edge AI infrastructure, including data labelling and model training tools. The new funds from Meta will be used to accelerate the startup’s innovation drive, expand its strategic partnerships, and return capital to its equity holders, the company said.

Following Wang’s move to Meta, Scale AI will see a change in leadership. Jason Droege, a seasoned Silicon Valley executive and co-founder of Uber Eats, has been named the new CEO. Droege expressed enthusiasm about taking the helm, stating, “Scale has led the charge in accelerating AI development. We have built the strongest foundation to tackle AI’s data challenges and push the boundaries of what’s possible.”

The investment is Meta’s latest bold play in the AI arms race. CEO Mark Zuckerberg has been vocal about the company’s ambitions in generative AI (Gen AI), recently noting that Meta’s AI assistant is already being used by over a billion people monthly across platforms like Facebook, Instagram, and WhatsApp.

This partnership with Scale AI could significantly enhance Meta’s capabilities in training and deploying more sophisticated AI models, especially as the company explores more agentic and autonomous AI systems. Wang’s track record of leading AI projects at Scale that intersect with both commercial and government applications is likely to strengthen Meta’s R&D depth and practical deployment capacity.

The collaboration also reflects a broader industry trend where major tech firms are not only developing in-house AI solutions but also forging alliances with innovative startups to stay ahead. Meta’s stake in Scale AI places it in a stronger position to leverage external innovation while nurturing top-tier talent within its ecosystem.

Notably, the investment comes at a time when scrutiny over tech dominance and AI ethics is mounting globally. Scale AI’s emphasis on aligning AI with human values and responsible deployment could also help Meta address growing concerns around the social impact of advanced AI systems.

While financial details of the transaction remain largely undisclosed, reports suggest that Meta’s investment exceeds $10 billion, making it one of the largest single commitments to an AI startup in recent years.

As Meta gears up for the next phase of AI competition, the inclusion of Alexandr Wang and the strategic link with Scale AI may prove to be a game-changing alliance one that not only fuels innovation but also sets the tone for how tech giants collaborate with agile, high-growth startups to shape the future of artificial intelligence.