Meta is accelerating its AI ambitions by actively pursuing several startups. Recently, the social media giant explored acquiring Runway, an AI video generation company, before announcing its massive $14.3 billion investment in Scale AI. Although talks with Runway did not progress far, Meta’s interest highlights its determination to dominate the AI space. The investment in Scale AI includes taking a 49% stake and positioning Alexandr Wang, the startup’s young co-founder, to lead Meta’s newly formed artificial superintelligence (ASI) lab.
Failed Deals and New Leadership Moves
Last week, Meta’s AI acquisition plans grabbed headlines again. The company showed interest in Perplexity AI, an AI search startup, as well as Safe Superintelligence and Thinking Machines two startups founded by OpenAI alumni. However, both acquisition attempts fell through, with these companies opting for additional funding rounds at higher valuations. Meanwhile, Meta plans to hire former GitHub CEO Nat Friedman and his partner Daniel Gross, who previously led Safe Superintelligence, signaling a strategic move to strengthen its AI expertise internally.
Pressure to Lead in the AI Race
Meta’s CEO, Mark Zuckerberg, faces mounting pressure to prove the company can compete with OpenAI and Google’s parent company, Alphabet, in the AI race. This urgency likely explains Meta’s aggressive spending spree despite soaring acquisition costs. Meta has a strong history of successful large-scale deals, such as acquiring Instagram and WhatsApp, which continue to deliver value. Meanwhile, Apple is also rumored to be interested in Perplexity AI, which offers a conversational approach to search, contrasting with traditional engines like Google’s. As competition heats up, Meta’s moves reflect its commitment to staying at the forefront of AI innovation.
