Meta in Talks for Multi-Billion Dollar Investment in Scale AI
Meta, formerly known as Facebook, is reportedly in discussions for a significant investment in Scale AI that could exceed $10 billion, as reported by Bloomberg. If finalized, this deal would mark the largest external AI investment for Meta and one of the largest funding events in the history of a private company.
Scale AI, led by CEO Alexandr Wang, specializes in providing data labeling services to tech giants like Microsoft and OpenAI to assist in training their AI models. The company predominantly relies on contractors for this labeling work, a practice that was recently under scrutiny by the Department of Labor for potential misclassification and underpayment issues.
With a reported revenue of $870 million last year, Scale AI is projected to reach $2 billion in revenue for the current year, according to Bloomberg’s sources.
It is worth noting that Meta was already an investor in Scale AI’s $1 billion Series F funding round, which valued the company at $13.8 billion. Additionally, Scale AI has developed Defense Llama, a sophisticated language model tailored for military applications, leveraging Meta’s Llama 3 technology.
