one year on
Meta invests $14.3 billion for 49% stake in Scale AI, poaches founder Alexandr Wang
The social media giant gains a leading data-labeling partner and a new superintelligence chief as competition with Google and OpenAI intensifies.
Meta is investing $14.3 billion into Scale AI for a 49% non-voting stake, valuing the data-labeling startup at roughly $29 billion. As part of the deal, Scale CEO and co-founder Alexandr Wang will leave the company to lead Meta’s superintelligence efforts, with roughly 50 researchers following him. Jason Droege, Scale’s chief strategy officer and a former Uber executive, steps in as interim CEO.
Scale AI will remain independent, and Meta will not gain access to customer data or business information, a company spokesperson said. The investment will be used to pay shareholders and fund growth. Wang will stay on Scale’s board.
The move comes as Mark Zuckerberg grows frustrated with Meta’s AI progress. CNBC reported this week that the company’s latest Llama models received a tepid reception from developers. Meanwhile, Meta rivals Google, OpenAI, and Microsoft are also Scale AI customers. Industry chatter this afternoon centers on whether those companies will continue doing business with a startup now deeply tied to a competitor.
The record
Posted memo on X stating he will stay as director but depart as CEO, calling the move a cost of the opportunity.
One year later — open only if you can handle spoilers
The deal ignited a summer talent war as AI labs scrambled to retain top researchers. Scale AI's valuation later dipped to $25 billion after several clients reduced their reliance. Wang's superintelligence team at Meta produced a reasoning model by early 2026 but faced internal friction with Zuckerberg's existing AI leadership.