Meta Nears 49% Acquisition of Scale AI in $14.8 Billion Deal

Bridgemena.

Share on
NEWS

According to The Information, Meta Platforms has agreed in principle to invest $14.8 billion to acquire a 49% stake in U.S.-based artificial intelligence company Scale AI, marking one of Meta’s largest AI investments since launching its LLaMA model series.

Scale AI is a key provider of high-quality training data used to develop advanced language models such as ChatGPT, making it a strategic target for major tech firms.

The proposed deal also includes the transition of Scale AI’s founder, Alexandr Wang, to Meta, where he would lead the establishment of a specialized advanced AI lab.

Scale AI was valued at $13.8 billion in 2024, with annual revenues nearing $870 million. Estimates suggest the company could surpass $2 billion in revenue by 2025, supported by over $900 million in cash reserves, based on internal data cited by the report.

The deal has been structured to minimize regulatory scrutiny, especially given Meta’s previous challenges following its acquisitions of Instagram and WhatsApp. The legal design of this partnership is intended to mitigate similar obstacles.

Several notable investors are expected to retain ownership stakes post-transaction, including Accel, Index Ventures, Founders Fund, and Greenoaks, along with current and former employees.

If completed, the move would represent a major shift in Meta’s strategy to bolster its AI capabilities amidst intensifying global competition in the space.

YOU MAY ALSO LIKE.

AUTHORS.

Posts: 2
Posts: 2
Posts: 2
Get weekly news straight from your inbox!

All the information you need to navigate Mena's startup ecosystem.

Sign up to receive our weekly digest of stories, op-eds, events and more updates.

All the information you need to navigate Mena's startup ecosystem.

Sign up to receive our weekly digest of stories, op-eds, events and more updates.