Scale AI Confirms Meta Investment as CEO Alexandr Wang Steps Down

Scale AI confirmed on Friday that it has received a “significant” investment from Meta, securing approximately $14.3 billion for a 49 percent stake.

Scale AI confirmed on Friday that it has received a “significant” investment from Meta, securing approximately $14.3 billion for a 49 percent stake, valuing the data‑labeling startup at $29 billion. As part of the agreement, Scale’s co‑founder and CEO, 28‑year‑old Alexandr Wang, will step away from his current role to join Meta as the lead of its new superintelligence lab. Meanwhile, Jason Droege, Scale’s chief strategy officer, will assume the position of interim CEO.

This move allows Meta to deepen its collaboration with Scale on producing and refining the annotated datasets essential for training advanced AI systems. Scale emphasised that it remains an independent entity and will channel the investment into funding growth, supporting shareholders, and empowering its innovation pipeline.

Meta’s underlying motive appears to be strengthening its AI capabilities and outpacing rivals like Google, OpenAI, Anthropic, and China’s DeepSeek. The company has faced setbacks, including talent loss, losing 4.3 percent of its AI staff last year, and delays in releasing new models after some underperformed expectations. By bringing Wang aboard, Zuckerberg signals a strategic pivot, following a similar founder-centric approach to OpenAI’s Sam Altman.

For Scale, this investment gives early backers like Accel and Index Ventures a chance to cash out, while still maintaining its independence and board membership for Wang. Yet, some clients of Scale may hesitate to continue working with a company now partially controlled by a competitor. Even so, Scale will benefit from fresh capital to accelerate its expansion and invest in higher-quality data services.

This high‑stakes deal could reshape AI competitiveness. Meta hopes that securing critical data pipelines and founder‑level leadership will regain momentum in the race for artificial general intelligence. As rival labs prepare countermeasures and regulators assess potential antitrust implications, the investment may serve as a defining milestone in how AI firms pursue growth through data, talent, and technology.

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Havilah Mbah
Havilah Mbah

Havilah is a staff writer at The Algorithm Daily, where she covers the latest developments in AI news, trends, and analysis. Outside of writing, Havilah enjoys cooking and experimenting with new recipes.

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