Meta is making a huge move in the world of artificial intelligence. The tech giant just bought a 49% stake in Scale AI for $14.8 billion. The deal values the data-labeling company at nearly $29 billion and brings its 28-year-old founder, Alexandr Wang, into Meta’s team.
Meta is investing in Scale to help it stay in the race against companies like OpenAI, Google, and DeepSeek. The main aim here? To bring in Wang, a young entrepreneur who made a huge name for himself by dropping out of MIT, starting Scale, and turning it into a multibillion dollar business.
For the average person, this means Meta is trying to stay on the cutting edge of developing powerful AI models — not just for social media, but for future technologies that we all use. Whether you’re scrolling Instagram, messaging friends, or experiencing a rich VR world, Meta wants to be the company shaping it.
The deal highlights a dramatic twist in the world of big tech. Instead of appointing a veteran scientist, Meta chose a young founder who’s more business-savvy than a lab veteran. It’s a bit like putting a young superstar coach in charge of a struggling team — a bold move, a fresh start.
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Meta’s cash injection makes this the company’s second-largest investment, after its $19 billion WhatsApp deal. The move signals Meta’s deep confidence in Wang’s ability to lead its future superintelligence department.
Wang, who founded Scale in 2016, quickly turned it into a key supplier of labeled data — the kind of data companies need to train powerful AI models. His platform lets gig workers manually label huge amounts of data, helping companies develop smarter algorithms.
He also cultivated strong relationships in Silicon Valley and Washington, D.C., securing federal contracts and venture funding from big players like Accel, Index, NVIDIA, Amazon, and now Meta.
Some industry insiders say this deal might raise eyebrows, wondering if Meta will get an unfair view into its rivals’ strategies through Scale. Nonetheless, Meta is keeping its hands off the board seats — a move meant to ease worries about conflict of interest.
“It’s a huge win for Meta and a dramatic rise for Wang, who drops from college kid to kingpin in just a few years.” — you might say it’s a story made in the algorithm.
Meta’s future depends on this move. Will the young founder help Meta outperform its big rivals in the race for superintelligence? Time will tell, but it’s clear Meta is putting a lot of faith — and cash — in him.
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