Meta Invests $14.3B in Scale AI, Brings 28-Year-Old CEO Alexandr Wang to Lead Superintelligence Team
Meta Platforms Inc., the parent company of Facebook and Instagram, has made a bold move in the artificial intelligence race by investing $14.3 billion in Scale AI, a fast-growing data-labeling startup. This investment not only values Scale at $29 billion but also brings its 28-year-old CEO, Alexandr Wang, into the heart of Meta’s next-gen AI ambitions.
Meta’s Real Target: Alexandr Wang, Not Just Scale AI
While the financial terms weren’t disclosed publicly, sources close to the matter say the key motivation behind the deal wasn’t just Scale’s technology—it was Alexandr Wang himself. He will now join Meta to lead its newly-formed Superintelligence division, focusing on building the next wave of AI technologies. Wang will also remain on the board of Scale AI.
“We will deepen our work together producing data for AI models, and Alexandr Wang will join Meta to lead our superintelligence efforts,” Meta said in a brief statement.
Who Is Alexandr Wang?
Wang, born in Los Alamos, New Mexico, to Chinese physicist parents, dropped out of MIT at a young age to launch Scale AI in 2016. In just a few years, he raised funding from top-tier venture capital firms and became one of Silicon Valley’s youngest self-made billionaires.
He’s built strong ties with leading tech figures, including OpenAI CEO Sam Altman, and has played an active role in shaping AI policy in Washington D.C., even testifying before the U.S. Congress.
A Critical Moment for Meta in the AI Race
Once considered a leader in open-source AI development, Meta has recently fallen behind rivals like Google, OpenAI, and China’s DeepSeek. The delay in releasing advanced open-source models, combined with significant staff turnover, has raised concerns about the company’s AI trajectory.
With Wang’s hiring, Mark Zuckerberg appears to be shifting strategy—moving away from a research-heavy model to one led by business-oriented leadership, similar to how Sam Altman runs OpenAI.
Scale AI’s Future: New Leadership, Old Connections
With Wang moving to Meta, Jason Droege, Scale AI’s Chief Strategy Officer, has been named interim CEO. A few employees from Scale’s 1,500-strong team will also join Wang at Meta. However, Meta will not take a board seat at Scale, according to reports.
Scale, which provides high-quality labeled datasets essential for training large language models like ChatGPT, was previously valued at $14 billion in a May 2024 funding round backed by Nvidia, Amazon, and Meta.
The company relies on platforms like Remotasks and Outlier to manage its global network of data annotators.
Possible Challenges Ahead for Scale AI
Despite the high valuation and investment, this deal may pose some challenges for Scale. Many of its current clients are competing AI labs, and some may feel uncomfortable continuing to work with a company whose founder is now working closely with a direct competitor—Meta.
Still, early investors such as Accel and Index Ventures are likely celebrating. The deal allows them to cash out up to 50% of their stake, marking a significant return on investment.
Meta’s Second-Largest Deal Ever
At $14.3 billion, this investment is Meta’s second-largest deal to date, following its $19 billion acquisition of WhatsApp in 2014.
As of now, it remains unclear whether this deal will face regulatory scrutiny. Meta is already under pressure from the U.S. Federal Trade Commission for past acquisitions like Instagram and WhatsApp, which regulators claim were meant to stifle competition.
Conclusion: A High-Stakes Bet on AI Leadership
With this investment, Meta isn’t just acquiring a stake in an AI startup—it’s betting on visionary leadership to reclaim its edge in the AI arms race. Whether Alexandr Wang can turn Meta’s superintelligence vision into reality remains to be seen, but one thing is certain: the AI landscape just got a lot more interesting.
