Meta to Invest Billions in Scale AI, Strengthening Its AI Data Strategy

Staff Writer: Sweata Maiti

Last Updated: June 10, 2025, 12:35:00 PM IST

Meta Platforms Inc. is in advanced discussions to invest over $10 billion in Scale AI, a startup specialising in data-labeling services essential for training artificial intelligence systems. If finalised, the investment would rank among the largest private funding rounds in AI history.

Scale AI, co-founded in 2016 by CEO Alexandr Wang, has rapidly established itself at the forefront of AI data infrastructure. The company’s services include annotating images, text, audio, and more, which are critical to developing accurate and reliable AI models. Scale also employs experts—including PhDs and professionals from various fields—to enhance model quality through sophisticated annotation methods.

In 2024, Scale AI generated approximately $870 million in revenue and anticipates this figure doubling to around $2 billion in 2025. Its client base includes major players like Microsoft, OpenAI, and Meta itself. Earlier this year, the company entered a tender discussion that valued it near $25 billion.

This proposed investment would surpass Meta’s traditional strategy of prioritising internal AI development and open-source initiatives. It would align Meta with peers like Microsoft and Amazon, who have invested heavily—often over $10 billion—in external AI ventures such as OpenAI and Anthropic.

The deal is still under negotiation, and terms may change before finalisation. Both Meta and Scale AI have refrained from commenting on the discussions.
Meta’s prospective investment in Scale AI reflects the increasing importance of data quality in AI development and marks a strategic shift toward substantial external collaborations, redefining the competitive landscape in the rapidly evolving AI sector.