Meta in Talks to Invest Over $10 Billion in Scale AI

Meta Platforms Inc. is reportedly negotiating a major investment of more than $ 10 billion in Scale AI, a San Francisco–based AI startup specialising in data labelling for machine learning models, Bloomberg reported.

If completed, this would be Meta’s largest‑ever external AI investment and one of the biggest private‑company funding rounds in history.

The investment would mark a significant strategic shift for Meta, which has historically focused on in‑house AI research and open‑source development for its Llama models. By partnering with Scale AI, Meta aims to strengthen its AI infrastructure and capabilities, keeping pace with rivals like Microsoft, Amazon and Alphabet who have collectively invested billions in AI startups such as OpenAI and Anthropic.

Scale AI

Founded in 2016 by CEO Alexandr Wang, Scale AI has become a key player in the generative AI space, offering high‑quality annotated data for clients including Microsoft, OpenAI and the US Department of Defence. The company’s services involve cleaning and tagging data—essential for training effective AI models—and operating a collaborative platform for AI researchers in over 9,000 cities worldwide.

Scale AI was valued at approximately $ 14 billion in 2024 following a $ 1 billion Series F funding round led by Accel with investments from Meta, Nvidia, Amazon, Intel, AMD and Cisco. Bloomberg recently reported that Scale is considering a tender offer that could boost its valuation to $ 25 billion, reflecting the startup’s rapid growth. In 2024, it generated $ 870 million in revenue and projects that figure to more than double to $ 2 billion in 2025 amid surging demand for AI training data.

Meta and Scale AI already collaborate on defence technology initiatives, including “Defense Llama,” a military‑focused version of Meta’s Llama AI model. This partnership aligns with Meta’s growing interest in national security applications, further evidenced by a recent collaboration with Anduril Industries to develop AI‑powered military equipment.

CEO Mark Zuckerberg has made AI Meta’s top corporate priority, pledging up to $ 65 billion in AI‑related spending this year, including a new data centre in Louisiana to support the company’s upcoming Llama 4 model. Meta’s AI chatbot, integrated across Facebook, Instagram and WhatsApp, currently serves over 1 billion monthly users.

While other tech giants have paired their AI investments with cloud service credits, it remains unclear what form Meta’s deal with Scale AI will take given Meta’s lack of a cloud‑services business. Nevertheless, the move signals Meta’s intent to deepen its role in the global AI ecosystem by securing access to high‑quality data and infrastructure through external partnerships.