Meta Platforms (NASDAQ: META) is in advanced talks to make a transformative investment exceeding $10 billion in Scale AI, a San Francisco-based startup specializing in data labeling for machine learning and artificial intelligence applications. If finalized, the deal would mark Meta’s largest-ever external AI investment and one of the most significant private funding rounds in technology history.
The potential investment signals a pivotal shift in Meta’s artificial intelligence strategy. Historically, Meta has prioritized internal research and open-source innovation, notably with its Llama language models and in-house AI teams. However, as rivals like Microsoft, Amazon, and Alphabet have poured billions into external partnerships with AI leaders such as OpenAI and Anthropic, Meta is now moving to deepen its own ecosystem through strategic collaboration.
Founded in 2016, Scale AI has rapidly established itself as a critical player in the AI infrastructure space, providing high-quality labeled data essential for training advanced machine learning models. Its client roster includes major technology companies like Microsoft and OpenAI, and it has recently expanded into national security, securing contracts with the U.S. Department of Defense. In 2024, Scale AI posted $870 million in revenue and is projecting to more than double that figure in 2025, reflecting the surging demand for data infrastructure behind the generative AI boom.
Meta’s interest in Scale AI extends beyond commercial applications. The two companies have already collaborated on Defense Llama, a custom version of Meta’s Llama large language model tailored for military use. This partnership underscores the growing intersection between AI, national security, and enterprise solutions—a space where Meta aims to expand its influence as AI adoption accelerates.
CEO Mark Zuckerberg has made AI Meta’s top priority for 2025, earmarking up to $65 billion for AI-related projects, including infrastructure, research, and talent acquisition. By investing in Scale AI, Meta seeks to address its own capacity constraints and keep pace with competitors that benefit from integrated cloud platforms and external AI alliances.
While the terms of the deal are still under negotiation, the proposed investment would not only bolster Scale AI’s position in the industry but also reinforce Meta’s commitment to leading the next wave of AI innovation. As the artificial intelligence race intensifies, this move positions Meta to compete more aggressively in both consumer and enterprise markets, setting the stage for a new era of AI-driven growth.
