Meta in talks to invest over $10 billion in Scale AI amid expanding AI push

Meta Platforms Inc. is in advanced discussions to invest over $10 billion in artificial intelligence (AI) startup Scale AI, a move that would mark the tech giant’s most significant external AI investment to date, according to a report byBloomberg.

The deal, which is still under negotiation, could become one of the largest private funding rounds in history, according to sources cited byBloomberg.

Founded in 2016 by CEO Alexandr Wang, Scale AI provides data labelling services essential to training machine learning models.

The company’s client list includes AI powerhouses such as Microsoft and OpenAI. Last valued at approximately $14 billion in 2024, Scale has since been in talks for a tender offer that could raise its valuation to $25 billion.

Meta shifts strategy amid AI arms race

Meta’s potential multibillion-dollar stake would represent a strategic pivot for the company, which has in the past relied on in-house AI research and open-source development, rather than making large external investments like its competitors.

This approach differs sharply from that of other Big Tech companies. Microsoft has poured over $13 billion into OpenAI, while Amazon and Alphabet have each committed billions to Anthropic, a rival AI startup. Many of these investments have been structured to include cloud-compute credits, a model Meta may not follow, as it does not operate a cloud platform.

In January, Meta CEO Mark Zuckerberg declared AI the company’s top strategic priority, announcing plans to invest as much as $65 billion in AI projects in 2025. One of its flagship efforts is Llama, its open-source large language model, which powers an AI assistant integrated into Facebook, Instagram, and WhatsApp, now reaching 1 billion users per month.

If the Scale deal materialises, it would mark Meta’s biggest external AI deal and deepen its involvement in AI data infrastructure, an area crucial to maintaining competitiveness in the rapidly evolving generative AI landscape.

Scale AI: A data powerhouse

Scale AI has seen meteoric growth, with 2024 revenues hitting $870 million and expectations of $2 billion in sales in 2025. The company plays a critical role in the AI ecosystem by using vast networks of contract workers to clean and label datasets, images, text, and other data required for training advanced models.

As the demand for high-quality, well-curated data intensifies, Scale’s services have become indispensable, especially as generative AI tools spread across industries and applications.

Shared interest in defence tech

Both Meta and Scale AI are increasingly extending their reach into defence technology. Meta recently partnered with defence contractor Anduril Industries to develop AI-enabled military products, including a virtual/augmented reality helmet. Meta has also authorised its AI models for use by US government agencies and defence contractors.

The two companies are working together on Defence Llama, a military-focused version of Meta’s language model. Meanwhile, Scale AI secured a US Department of Defense contract earlier this year to develop AI agent technology, which the company described as a “significant milestone in military advancement”.

The alignment of their defence ambitions may be another factor strengthening Meta’s interest in Scale.

While terms of the Meta-Scale deal remain fluid, the potential $10 billion-plus investment underscores a new phase in Meta’s AI playbook. As it works to close the gap with AI leaders like Microsoft and Google, investing in foundational AI infrastructure through a high-growth startup like Scale could give Meta access to both strategic data capabilities and government partnerships.

If finalised, the deal will not only reshape Meta’s role in the global AI race, but it may also cement Scale AI’s position as a central force in the generative AI revolution.

(With inputs from agencies)