Meta is investing nearly $15 billion for a 49% stake in data-labeling firm Scale AI, and bringing its CEO Alexandr Wang aboard to lead a new "superintelligence" group, a strategic push to accelerate its artificial general intelligence ambitions, as first detailed by The Information. This marks Meta's largest external AI investment, signaling a high-stakes bid to catch competitors in the AGI race.
Zuck's AGI obsession: The move comes as CEO Mark Zuckerberg, reportedly frustrated with Meta’s recent AI progress like the delayed "Behemoth" model, personally recruits for this new AGI team, according to Bloomberg. Valuing Scale AI at $28 billion post-investment, the deal underscores Zuckerberg's drive for Meta to not just compete, but lead in building AI that can outthink humans.
Unusual terms, strategic needs: Scale AI, a linchpin for training sophisticated AI models for giants like Microsoft and OpenAI, will see Meta’s cash go to existing shareholders, not its own balance sheet, per The Information. A large part of the investment also serves as an advance payment for future data services from Scale, Semafor reported, highlighting the critical role of specialized data. Wang will reportedly continue as Scale's CEO while leading a team of about 50 at Meta.
Playing the long game: This major investment mirrors strategies by rivals like Microsoft with OpenAI, as Meta aims to secure both top talent and essential data infrastructure. The sub-50% stake might also be a calculated move to navigate potential antitrust hurdles, a familiar battleground for the company, as it shores up resources for its Llama models and the broader AGI quest.
The bottom line: Meta is betting billions that combining Scale AI’s data prowess with a dedicated internal AGI lab under Wang can catapult it to the forefront of AI development, a race where data, talent, and deep pockets are the price of entry.
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Meanwhile, in the AI whirlwind: While Meta makes its mega-deal, SMBs are increasingly adopting AI to level the playing field against larger enterprises, according to a Verizon survey. Elsewhere, Scale AI itself has been expanding its government contracts and reportedly eyes a $2 billion revenue year. And in a reminder of AI's complexities, Meta previously faced scrutiny over attempts to influence AI model benchmarks.
