Meta Hires Scale AI CEO After Major Investment Deal
Meta has acquired a 49% stake in data-labeling startup Scale AI, a deal valuing the company at $29 billion. The tech giant is investing $14.3 billion not just in technology but in talent. The main reason behind the move? To bring 28-year-old Scale AI CEO Alexandr Wang on board to lead Meta’s new superintelligence unit.
“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 said in a statement, though it didn’t share financial specifics.
Wang’s shift to Meta signals a broader strategy. While he does not come from a traditional research background, Wang has built a powerhouse business in the AI space. Consequently, Meta CEO Mark Zuckerberg appears to be betting on business-focused leadership to revive the company’s AI momentum. This pivot echoes the success of leaders like OpenAI’s Sam Altman, who also came from a non-research background.
Scale’s Future and Meta’s Ambitions
Although Meta is not taking a board seat at Scale, the move still reshapes dynamics in the AI ecosystem. Jason Droege, Scale’s chief strategy officer, will become interim CEO. Meanwhile, Wang will remain on Scale’s board, and a few team members will transition to Meta alongside him.
Despite this leadership change, potential complications may arise. Scale currently works with major AI labs including some that compete directly with Meta. As a result, some clients might reconsider their relationships, fearing conflicts of interest. However, the deal still marks a win for early investors like Accel and Index Ventures, who can now cash out half their stakes.
Founded in 2016, Scale AI delivers precisely labeled data crucial for training large AI models such as OpenAI’s ChatGPT. To meet demand, the company runs platforms like Remotasks and Outlier, which employ gig workers for manual data labeling. Its last funding round in May 2024 had already pushed Scale’s value close to $14 billion, with support from Nvidia, Amazon, and Meta.
Why Meta Needed This Now
Meta, once a leader in open-source AI, has recently lost ground. Staff departures and delayed model releases have raised concerns, especially with competitors like OpenAI, Google, and China’s DeepSeek gaining momentum. Bringing in Wang could offer a business-savvy path forward, potentially enabling Meta to catch up or even surpass its rivals.
The investment also ranks as Meta’s second-largest ever, trailing only the $19 billion acquisition of WhatsApp. While regulatory scrutiny is uncertain, it’s worth noting that Meta is already facing legal challenges from the U.S. Federal Trade Commission regarding past acquisitions.
Wang, originally from Los Alamos, New Mexico, co-founded Scale after leaving MIT. Over the years, he has built strong ties with Washington policymakers and leading figures in tech. His leadership, combined with Meta’s resources, could shape the future of superintelligence and realign the balance of power in AI.
