Meta In Talks To Invest Over $10B In Scale AI — Possibly The Biggest Private AI Deal This Year

Meta is reportedly in talks to invest over $10 billion in Scale AI, a startup crucial for providing labeled data for AI models. This potential investment could rank among the largest private funding rounds in tech history. Scale AI, which expects to generate $2 billion in revenue this year, plays a vital role in the AI supply chain. The deal aligns with Meta's strategy to secure valuable data resources and strengthen its relationship with U.S. regulatory bodies, despite facing scrutiny over labor practices.

Meta META is reportedly preparing to invest more than $10 billion in Scale AI, a startup providing high-quality labeled data to companies building next-generation AI models, including OpenAI and Microsoft MSFT. If finalized, the deal would rank among the largest private funding rounds in tech history, Bloomberg reports.

San Francisco-based, Scale AI plays a pivotal role in the artificial intelligence supply chain by powering data pipelines used to train large language models like ChatGPT and Meta's Llama. According to Investor’s Business Daily, Meta's potential investment builds on its prior participation in Scale's $1 billion Series F round in 2024, which valued the firm at $18 billion.

Don't Miss:

Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share!

Pre-IPO Offer: Get A Piece Of A Nearly $5T Global Opportunity By Joining BOXABL As An Early Shareholder At Just $0.80/Share

Massive Demand & Disruptive Potential – Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.
Revolutionary Manufacturing Approach – Inspired by Henry Ford’s assembly line, Boxabl’s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.
Affordable Investment Opportunity – With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth.

Share Price: $0.80

Min. Investment: $1,000

Valuation: $3.5B

A Strategic Play To Secure AI's Most Valuable Resource

While chips and talent dominate most AI headlines, data remains the less-publicized pillar essential to building models that mimic human reasoning, Bloomberg says. Scale AI provides structured and labeled data by deploying a global network of contractors, including experts with PhDs and graduate degrees in medicine, law, and molecular biology.

The firm's high-level contributors create test scenarios and reinforce learning strategies for AI systems, ensuring that models produce accurate and context-aware responses, especially in industries such as healthcare and tax law. According to Bloomberg, as of this year, 12% of Scale's contributors involved in improving AI models held PhDs in fields such as molecular biology, while more than 40% had a master's degree, law degree, or MBA in their area of expertise.

Trending: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation

Scale AI expects to generate $2 billion in revenue this year, more than doubling the $870 million earned last year, Bloomberg reports. This surge reflects the broader industry's increasing need for tailored datasets as synthetic training data begins to reach its performance limits.

Meta Aligns Infrastructure With Policy Power

Meta's relationship with Scale also serves the purpose of regulatory alignment. Scale CEO Alexandr Wang has become a regular presence in Washington, advising lawmakers on AI regulation and calling for a ‘national AI data reserve.' Bloomberg reports that lawmakers on Capitol Hill have welcomed his insights, viewing Scale as a bridge between Silicon Valley innovation and federal oversight.

Investor’s Business Daily says that Scale has also expanded its role in defense AI by contributing to projects such as Meta's Defense Llama model, designed for U.S. national security applications. This aligns Meta more closely with the U.S. government, following similar partnerships between Microsoft and OpenAI.

Risks, Scrutiny, And The Road Ahead

Despite its success, Scale has faced criticism for labor practices involving overseas contractors in countries like Kenya and the Philippines, where some workers were paid relatively little and reported psychological distress from reviewing harmful online content, Bloomberg reports. According to TechCrunch, the U.S. Department of Labor has since closed its investigation into the company's compliance with wage regulations, but ongoing scrutiny remains a reputational concern.

According to Bloomberg, insiders say discussions between Meta and Scale are ongoing and could still shift. Regardless of a final number, Meta's expected commitment may redefine the race for control of the AI data layer, strengthening Scale AI's position at the heart of artificial intelligence's next chapter.

Are you rich? Here’s what Americans think you need to be considered wealthy.
Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share.

Image: Shutterstock