Meta Reportedly In Talks To Invest In Scale AI

According to a Bloomberg report, Meta is reportedly planning a major investment in Scale AI, potentially making it “one of the largest private company funding events of all time,” Andrew Nusca reported for Fortune Tech.

Meta and Scale currently collaborate on a program involving the military’s use of Meta’s Llama AI model. I Photo: Mark Zuckerberg Facebook

Scale AI was valued at $13.8 billion last year. Earlier this year, reports indicated the company was working on a deal that would raise its valuation to $25 billion.

The San Francisco-based startup, co-founded by Quora veterans Alexandr Wang and Lucy Guo in 2016, specializes in preparing corporate data for use in AI applications.

Its customers include Cisco, General Motors, Microsoft, OpenAI, and Meta. Both Microsoft and Meta already hold stakes in the company.

Meta CEO Mark Zuckerberg has made AI the company’s top priority in recent years, allocating $65 billion to related projects this year alone.

Notably, acquisitions have not been a significant part of Meta’s AI strategy—unlike its peers Amazon, Alphabet, and Microsoft, which have invested billions in AI startups such as Anthropic and OpenAI.

That could soon change. Meta and Scale currently collaborate on a program involving the military’s use of Meta’s Llama AI model. Meta also recently announced a partnership with defense contractor Anduril to develop AI-powered equipment.