Zuckerberg contemplates a $10 billion tie-up with AI startup.
Boom Time for Meta: $10 Billion Investment in AI Startup
Looks like Meta Platforms Inc., aka the organization labeled extremist in Russia, is shaking things up. They've just struck a preliminary deal to sink a staggering sum over $10 billion into Scale AI, an AI data processing company. This whopping investment could earn Meta's holding the title of the largest industry deal for external funding, according to the folks at Bloomberg.
Usually, Meta hasn't been one for splashing cash on the external projects. But this time seems different. The tech titan, especially Mark Zuckerberg’s empire, is pushing into uncharted territory by venturing into external investments. It's been a long-standing tradition for Meta to rely on its own research and internal capabilities. And the potential agreement parties have reportedly signed contracts with the US defense industry to develop AI for military purposes, further adding intrigue to the situation.
Scale AI, founded in 2016, stands out in the market for its expertise in preparing hefty datasets for training generative AI. With a focus on large language models like the oneMeta's developing—the Llama—Scale AI is ripe for the pickings.
The Llama chatbot has been serving over 1 billion users across Meta’s owned platforms, including Facebook, Instagram, and WhatsApp (all restricted in Russia). In Russia, a 2025 study reveals that an astounding 90% of businesses use WhatsApp for communication. Over half of the surveyed brands interact with more than half of their clients through WhatsApp.
On another note, if you're curious, restrictions on WhatsApp were met with resistance from 72% of small to medium-sized businesses in Russia.
Also, check out DK.RU's report on YouTube's work in Russia being restored upon fulfillment of a list of requirements.
The Details:- The investment could reach an astronomical $10 billion, marking Meta's largest-ever external expenditure on AI, signaling a major shift from its self-reliant approach.- Scale AI is a critical player in the market, providing data labeling services necessary for machine learning models. They've worked with big names like Microsoft and OpenAI and are valued at nearly $14 billion.- By supporting Scale AI, Meta aims to speed up advancements in AI technology, leading to more sophisticated applications across sectors, and potentially giving it a competitive edge in the AI landscape.
This deal could improve the quality and availability of data for AI models, essential for large language model development. However, future implications for military use are unclear at the moment. Let the negotiations unfold as we wait for more updates!
- Meta Platforms Inc., traditionally relying on its own research and internal capabilities, is poised to make a significant shift in its investment strategy by investing $10 billion in Scale AI, a move that could signal a competitive edge in the AI landscape.
- In the realm of business, this investment marks Meta's largest-ever external expenditure on AI, underscoring a growing interest in collaborating with external innovation, particularly in the technology sector.
- By partnering with Scale AI, a company known for its expertise in preparing datasets for training generative AI and working with industry giants like Microsoft and OpenAI, Meta intends to accelerate advancements in AI technology, potentially expanding its presence in the expanding field of investing in AI startups.
