Meta is dropping $14.3 billion to buy 49% of Scale AI and snag its CEO, Alexandr Wang, to jump-start its lagging AI work.
Wang will report directly to Meta CEO Mark Zuckerberg and keep a seat on Scale’s board. He’s set to lead a new AI lab at Meta focused on building “superintelligence,” the companies said Thursday. Meta spokesperson Ashley Zandy promised more details on the team soon.
Zuckerberg is aggressively recruiting AI talent from rivals like Google, offering seven- and eight-figure pay packages. He’s known to hit up prospects via cold emails and WhatsApp messages. 
Scale AI provides critical data annotation and labeling for AI models, working with big names like Google, OpenAI, and Anthropic. Most data labeling happens through low-cost labor abroad. After Wang’s move, Jason Droege, Scale’s former chief strategy officer, steps in as interim CEO.
Wang, recognized as the world’s youngest self-made billionaire at 21, sent this memo to Scale staff:
“We’ve grown to over 1,500 people and become the trusted partner for model builders, enterprises, and governments building and deploying the smartest Al tools and applications.”
“Scale is now one of the most impactful companies in the world, accelerating the development of what may be the most important technology in human history. Today, we are announcing a massive new investment from Meta. This is a major milestone and a powerful validation of the hard work you’ve all put into Scale’s mission.”
“Proceeds from Meta’s investment will be distributed to those of you who are shareholders and vested equity holders, while maintaining the opportunity to continue participating in our future growth as ongoing equity holders.”
Meta is following Big Tech’s playbook by investing without a full buyout, aiming to dodge antitrust headaches. However, regulators are likely to scrutinize the deal since Meta gets non-voting shares only.
Scale’s government contracts keep expanding. The company signed a landmark AI agent deal with the U.S. Department of Defense earlier this year and recently landed a five-year AI tools contract with Qatar. Asia and Europe deals could contribute heavily to sales soon.
Meta is also fighting a U.S. government trial to prevent a breakup.
Meta’s AI push is urgent after the rocky rollout of Llama 4. The delayed launch and leaderboard manipulation harmed its credibility. The flagship Llama 4 Behemoth model teased in April is still MIA.
Last month, Zuckerberg said Meta’s top 2025 goals are making Meta AI the “leading personal AI” and building “full general intelligence.” He claims Meta AI hit one billion monthly users, boosted by Instagram, WhatsApp, and Facebook integration.
In April, Meta rolled out a standalone Meta AI app with a social feed showing user interactions. The app briefly topped the App Store but soon faded.
This massive deal and talent haul underline Meta’s desperate bet to catch the AI leaders and reboot its AI division fast.
