Meta Platforms Inc. stock surged as reports emerged that Meta is in advanced talks to invest over $10 billion in Scale AI, a leading artificial intelligence startup. This prospective deal marks one of the largest private funding rounds in the AI sector and represents Meta’s most significant external AI investment to date, signaling strong investor confidence in the company’s strategic pivot toward artificial intelligence.
Scale AI, founded in 2016, specializes in data labeling and model training services essential for developing advanced AI systems. The startup serves major clients including Microsoft, OpenAI, and Meta itself, providing high-quality labeled data crucial for training large language models and other AI applications.
Scale AI’s rapid growth is reflected in its revenue, which reached approximately $870 million in 2024 and is projected to double to $2 billion in 2025. The company’s valuation has soared, with recent funding rounds placing it near $25 billion.
Meta’s potential investment aligns with CEO Mark Zuckerberg’s commitment to making AI central to the company’s future. In early 2025, Meta raised its capital expenditure guidance to as much as $72 billion, emphasizing investments in AI infrastructure, data centers, and talent acquisition.
This external funding move marks a strategic shift for Meta, which has traditionally focused on in-house AI development, and mirrors aggressive AI investments by tech rivals like Microsoft and Amazon.
The market reacted positively to the news, with Meta’s stock rising above $700, reflecting optimism about the company’s ability to leverage Scale AI’s expertise to accelerate its AI initiatives.
Meta’s AI projects, including the open-source Llama large language models and the Defense Llama program for national security applications, stand to benefit significantly from this partnership. Investors view this as a critical step in maintaining Meta’s competitive edge in the rapidly evolving AI landscape.
While regulatory scrutiny and competitive pressures persist, Meta’s bold investment strategy underscores its determination to lead in AI innovation.
The potential Scale AI deal not only strengthens Meta’s technological capabilities but also reinforces its position as a dominant force in both social media and artificial intelligence, positioning the company for sustained growth and shareholder value in the years ahead.
