Meta considers multibillion-dollar Scale AI investment in rare external Artificial Intelligence play

Meta is in advanced talks to make its largest external Artificial Intelligence investment yet, reportedly exceeding several billion dollars, into data labeling startup Scale AI.

Meta Platforms is in negotiations to make a significant multibillion-dollar investment in Scale AI, a data labeling startup integral to the current wave of generative Artificial Intelligence advancements. Insiders report the prospective deal could surpass several billion dollars, making it one of the most substantial private funding events in the technology sector´s history. Although the final terms are still being discussed and could change, such an investment would represent Meta´s largest external Artificial Intelligence commitment to date.

Historically, Meta has relied predominantly on in-house research and an open development strategy to push improvements in machine learning and Artificial Intelligence technologies, setting it apart from major technology peers. By contrast, companies like Microsoft, Amazon, and Alphabet have collectively invested billions into Artificial Intelligence startups, notably OpenAI and Anthropic, often leveraging cloud computing credits as part of their strategies. However, Meta lacks its own cloud business, and sources indicate it remains uncertain what form Meta´s financial involvement in Scale AI would ultimately take.

Scale AI, founded in 2016 and last valued at roughly nine billion dollars in 2024, has rapidly attracted a high-profile client list including Microsoft and OpenAI. Its core capability—providing vast amounts of accurately labeled data for model training—has become increasingly vital as the relevance of generative Artificial Intelligence accelerates. The company’s revenue reportedly reached hundreds of millions last year and is projected to more than double in 2025. Beyond commercial expansion, Scale and Meta have both deepened engagement with defense technology, highlighted by partnerships on defense-focused large language models and collaborations with military contractors like Anduril Industries. Scale recently secured a contract with the US Defense Department to further Artificial Intelligence for defense, marking what the startup described as a major milestone for military technological advancement.

This potential partnership signals a new phase for Meta’s Artificial Intelligence ambitions. Chief executive Mark Zuckerberg has declared Artificial Intelligence the company’s top priority, committing tens of billions in overall spending to related projects in 2025. While Meta’s own chatbot products like Llama have reached global scale, forging deeper links with Scale AI could help further differentiate Meta’s approach and competitiveness in a field where superior data and training infrastructure have become strategic necessities. Both companies’ involvement with national defense underscores the growing importance and public policy dimensions of advancements in Artificial Intelligence.

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