Meta in talks for $10 billion ScaleAI investment

Meta Platforms is in advanced talks to make an investment that could exceed $10 billion in artificial intelligence (AI) startup Scale AI, in potentially Meta’s largest external AI investment to date.

Bloomberg reported that the terms of the deal are not yet finalized and may change, but the move signals Meta’s aggressive push into AI.

Founded in 2016 by CEO Alexandr Wang, Scale AI provides data labeling and model evaluation services to help businesses develop AI applications. The company has become central to the generative AI boom and services clients like Microsoft and OpenAI.

Scale AI was last valued at about $14 billion in 2024, but the company was reportedly in discussions for a tender offer that could raise its valuation to $25 billion.

According to Bloomberg, Scale AI’s projected sales will top $2 billion in 2025, doubling on revenues of $870 million last year.

If successful, the deal will mark Meta’s largest external AI investment to date. Unlike its AI-focused rivals like Microsoft, Amazon, and Alphabet, Meta lacks a cloud business, so it remains uncertain how the investment would be structured.

Meta’s CEO, Mark Zuckerberg, has announced that Meta would spend up to $65 billion on AI-related projects in 2025. This includes Llama, a family of open-source large language models (LLMs) and large multimodal models (LMMs), which are collectively referred to as “the world's smartest large language models.”

The news comes as Meta partnered with defense contractor Anduril Industries to develop new products for the American military, including an AI-powered helmet with virtual and augmented reality features.