Derick Hudson
- Meta Platforms (NASDAQ:META) has agreed to pay $14.8B for a 49% stake in artificial intelligence startup Scale AI, The Information reported.
- The deal, once finalized, will see Meta send the money to Scale AI’s existing shareholders, while Scale AI CEO Alexandr Wang, 28, will become a top executive at Meta, the news outlet added, citing two people familiar with the matter. Scale AI offers data services to help companies train their models.
- Wang could become a part of Meta’s “superintelligence” team that CEO Mark Zucerkerbg is personally involved in, according to separate media reports.
- Meta and Scale AI did not immediately respond to a request for comment from Seeking Alpha.
- It would value Scale AI at $28B, up from the $13.8B that it was valued at in 2024. The deal could also be structured in a way that could avoid regulatory scrutiny, as Meta is a significant customer of Scale AI, as are some of Meta’s biggest competitors, including Alphabet (GOOG) (GOOGL), Microsoft (MSFT), Nvidia (NVDA) and OpenAI.
- It was reported over the weekend that Meta was in advanced discussions to acquire a significant stake in Scale.
- Seeking Alpha analysts said that if Meta goes ahead with an investment into Scale AI, it could boost its exposure to artificial intelligence, and provide a “positive catalyst” for the Mark Zuckerberg-led company.