Scale AI Confirms Meta’s ‘Minority’ Investment Valuing Startup At $29B — Founder Alexander Wang To Join Facebook Parent
Synopsis
Scale AI did not disclose the investment size, but a Wall Street Journal report said earlier this week that Meta could be eyeing a 49% stake, valued at around $14 billion.
Meta’s multi-billion-dollar bet in artificial intelligence (AI) startup Scale AI is official. The startup announced receiving a “significant investment” from the social-media giant.
Rumors regarding the investment have been doing the rounds since the start of the week.
However, the company did not disclose the investment size, but a Wall Street Journal report said earlier this week that Meta could be eyeing a 49% stake, valued at around $14 billion.
Scale AI said the new Meta investment values it at over $29 billion. A previous funding round in 2024 gave the startup a $14 billion valuation.
Following the consummation of the investment, Meta will hold a minority stake in Scale AI.
San Francisco, California-based Scale AI was co-founded by Alexander Wang in 2016. The company provides data labeling and model evaluation services to develop applications for AI.
Scale AI said the agreement will “substantially expand Scale and Meta’s commercial relationship to accelerate deployment of Scale’s data solutions.”
The startup’s founder Alexander Wang is set to join Meta to work on the Mark Zuckerberg-led company’s AI initiatives but will continue to serve on Scale AI’s board.
Wang will be replaced as CEO on an interim basis by Scale AI Chief Strategy Officer Jason Droege. The new CEO is a veteran tech investor and a co-founder of Uber Eats food delivery platform.
Scale AI said it would use the proceeds from Meta’s investment to accelerate innovation and strengthen strategic partnerships with customers. It also plans to distribute part of the investment to its shareholders and vested equity holders.
Following its investment, Meta will hold a minority of Scale’s outstanding equity.
Wang said, “Meta’s investment recognizes Scale’s accomplishments to date and reaffirms that our path forward – like that of AI – is limitless.”
“I'm delighted that Jason will lead the next steps in Scale's journey and bring his experience and skill to continue its success.”
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