Meta Platforms Inc. Invests $14.8 Billion in Scale AI to Bolster AI Ambitions
TL;DR
Meta Platforms invests $14.8 billion for a 49% stake in Scale AI, positioning itself ahead in the AI race by enhancing its data-labeling capabilities for AI model training.
Meta's $14.8 billion investment in Scale AI secures a 49% stake, integrating Scale AI's CEO and a 50-person team into Meta to advance AI research and development.
Meta's significant investment in Scale AI aims to accelerate AI advancements, potentially leading to breakthroughs that could improve technology and society's future.
Meta bets big on AI with a $14.8 billion investment in Scale AI, marking a strategic pivot to lead in artificial intelligence innovation.
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Meta Platforms Inc. (NASDAQ: META) has announced a substantial $14.8 billion investment to acquire a 49% stake in Scale AI, a key player in data-labeling services essential for AI model training. This strategic move includes Scale AI's CEO, Alexandr Wang, joining Meta to lead a new 'superintelligence' lab, alongside a dedicated 50-person research team under Mark Zuckerberg's leadership. This development follows challenges with Meta's Llama 4 performance and delays in its 'Behemoth' AI model, marking a pivotal shift in the company's AI strategy.
The investment is under scrutiny by U.S. antitrust authorities, including the FTC and DOJ, due to concerns over minority investments under Clayton Act provisions. This scrutiny echoes past regulatory challenges Meta faced with its acquisitions of Instagram and WhatsApp. However, the deal's proponents highlight Scale AI's projected revenue doubling to over $2 billion by 2025 and the potential for early investor gains as justifications for the investment.
As of June 11, 2025, Meta's stock (NASDAQ: META) experienced a slight decrease, trading at $700.45, down $1.95 (–0.28%) for the day, with intraday trading ranging between $697.72 and $708.54 on a volume of approximately 4.8 million shares. This investment underscores Meta's commitment to advancing its AI infrastructure, despite regulatory hurdles and market fluctuations.
For more details on this development, visit https://ibn.fm/ITIbl.
Curated from InvestorBrandNetwork (IBN)
