Meta Platforms Inc. is reportedly in advanced discussions to invest more than $10 billion in Scale AI, according to a Bloomberg report. If completed, the deal would mark one of the largest private AI funding rounds in history and Meta’s most significant external AI investment to date.
Founded in 2016 by Alexandr Wang, Scale AI specializes in data labeling—a crucial process in training AI models. The startup supports some of the biggest players in the space, including Microsoft and OpenAI, by helping structure and clean the data required for machine learning systems.
Scale AI was last valued at $14 billion in a 2024 funding round backed by both Meta and Microsoft. It is now reportedly considering a tender offer valuing the company at $25 billion, driven by a revenue surge from $870 million in 2024 to a projected $2 billion in 2025.
Neither Meta nor Scale has confirmed the investment discussions, and terms remain subject to change. Still, the potential investment reflects a strategic pivot for Meta, which has traditionally focused on in-house AI development.
Until now, Meta has leaned heavily on its internal AI research and open-source efforts, such as the Llama large language model (LLM). Unlike competitors like Microsoft, Amazon, and Alphabet, which have made multi-billion-dollar bets on external ventures like OpenAI and Anthropic, Meta has been largely self-sufficient in AI innovation.
That may be changing.
In January, Meta CEO Mark Zuckerberg declared AI as the company’s top priority, with plans to invest up to $65 billion in the technology in 2025. Llama is already powering Meta’s AI assistant across platforms like Facebook, Instagram, and WhatsApp, used by over 1 billion people monthly.
Meta and Scale are already working together on Defense Llama, a customized version of Meta’s LLM tailored for military applications. Meta recently entered a partnership with defense firm Anduril Industries to co-develop AI-powered AR/VR helmets for the U.S. military. It also began authorizing the use of its AI models by U.S. government agencies and contractors—a rare step for a Big Tech firm.
Scale AI has also deepened its federal involvement. Earlier this year, the company secured a U.S. Department of Defense contract to develop AI agents, which it called a “significant milestone in military advancement.”
