Meta Platforms is in advanced discussions to invest billions in Scale AI, a fast-growing artificial intelligence company specializing in labeled data for training large language models (LLMs), signaling a major step forward in the tech giant’s AI ambitions.
According to insiders familiar with the negotiations, the deal—if finalized—could rank among the largest private investments in the AI space this year. The funding would deepen Meta’s collaboration with Scale AI, a company that has quietly become a key infrastructure provider for cutting-edge generative AI models.
Meta’s Deepening Push into AI
Meta’s interest in Scale AI underscores its broader strategy to become a dominant force in artificial intelligence. Over the past year, the company has made bold moves to reposition itself beyond social media, channeling massive resources into developing AI systems and infrastructure.
This planned investment in Scale AI aligns with Meta’s ambitions to build advanced AI tools, including its own large language models like LLaMA, which have been released as open-source alternatives to commercial AI products. The ability to access accurately labeled training data is essential for the success of such models.
Shortly after rebranding to focus on the metaverse in 2021, Meta expanded its AI research units and has since accelerated spending in the area. Now, the company is expected to dramatically increase its capital expenditures for 2025—possibly reaching upwards of $70 billion. Much of this funding is allocated to AI development, including new data centers, infrastructure, and partnerships like the one potentially unfolding with Scale AI.
Scale AI’s Meteoric Rise
Founded in 2016, Scale AI started as a data-labeling platform and quickly gained attention for its ability to provide the annotated data that AI systems need to learn. This includes labeling images, text, audio, and video—tasks that require a blend of automation and human oversight.
The company has since worked with several leading technology firms and government agencies, solidifying its role as a cornerstone of modern AI development. It now services clients building AI models for both civilian and defense applications.
In 2024, Scale AI reportedly achieved nearly $900 million in revenue, with expectations to surpass $2 billion in 2025. Its workforce has grown substantially, and its valuation soared following a major funding round that brought in capital from prominent investors.
An investment from Meta could strengthen Scale AI’s capabilities and broaden its reach, allowing it to expand operations globally and support a wider range of AI initiatives.
Changing the Competitive Landscape
Meta’s decision to explore a massive investment in a data-labeling partner could reshape the landscape of AI development, which is increasingly dominated by a few players with access to massive datasets and computing power.
By forging closer ties with Scale AI, Meta positions itself to keep pace with competitors like OpenAI, Google DeepMind, and Anthropic, all of whom rely heavily on vast, high-quality datasets to build the next generation of AI tools.
Industry experts suggest that this kind of vertical integration—where a major AI player partners closely with or invests in a foundational infrastructure firm—may become a new norm in the AI race.
Implications for Meta’s Product Ecosystem
Internally, Meta has already begun integrating generative AI into its product suite. Its conversational agent, Meta.AI, now interacts with users across the company’s social and messaging platforms. The company is also building AI tools for creators, advertisers, and developers, ranging from content suggestion engines to automated video and ad creation systems.
By 2026, Meta is expected to deploy AI-driven advertising platforms that can generate full ad campaigns with minimal human input. A strategic relationship with Scale AI could accelerate this timeline and enhance the quality of AI-generated content.
Looking Ahead
If the deal goes through, it would represent a landmark moment for both Meta and Scale AI. For Meta, it would secure a critical piece of its AI development pipeline. For Scale AI, it would provide the resources and validation needed to continue its rapid ascent in the AI infrastructure space.
The potential partnership also speaks to the growing importance of data in the AI era. As generative AI becomes more sophisticated, the value of accurately labeled, diverse, and ethically sourced training data cannot be overstated.
With regulatory scrutiny increasing and ethical concerns mounting, both Meta and Scale AI will likely need to navigate new challenges in ensuring transparency, privacy, and accountability in how their AI models are trained and deployed.