Meta to pay nearly $15 billion for Scale AI stake, The Information reports

Meta Platforms is reportedly in talks to acquire a 49% stake in AI startup Scale AI for $14.8 billion, according to The Information. The deal, which would benefit Scale AI's investors and employees, would also see Scale AI CEO Alexandr Wang lead a new "superintelligence" lab at Meta as the company seeks to bolster its AI capabilities after its initial Llama 4 models underperformed and the release of its flagship "Behemoth" model was delayed. The structure of the deal may be designed to avoid regulatory scrutiny, and it comes as Scale AI projects revenue exceeding $2 billion this year after generating $870 million in 2024.

Analysis

Meta Platforms is reportedly negotiating a significant strategic investment to acquire a 49% stake in artificial intelligence data provider Scale AI for $14.8 billion, a deal yet to be finalized. This valuation implies an approximate $30.2 billion enterprise value for Scale AI, substantially above its $13.8 billion valuation from a funding round last spring, and reflects its strong financial performance, with reported revenues of approximately $870 million in 2024 and projections exceeding $2 billion for the current year. For Meta, this move is a critical component of its strategy to bolster its AI capabilities and address perceptions of lagging in the AI race, following underperformance of its Llama 4 models and delays to its flagship "Behemoth" AI model; the deal would also see Scale AI CEO Alexandr Wang lead a new "superintelligence" lab within Meta. The proposed non-controlling 49% stake may be structured to navigate potential antitrust scrutiny, a known challenge for Meta, given its history with acquisitions like Instagram and WhatsApp. Securing access to Scale AI's vast labeled data resources is pivotal for Meta's ambitions in developing advanced large language models and maintaining competitiveness in the rapidly evolving AI landscape.

Key Decisions for Investors

• Investors in Meta should consider this potential acquisition as a strategically significant move to accelerate its AI development, while closely monitoring the final deal terms, integration success, and the overall impact on Meta's capital allocation and financial profile.
• The 49% stake structure appears designed to mitigate regulatory interference; however, given Meta's history of antitrust concerns, the outcome of any regulatory review remains a key risk factor that could affect the deal's completion or its conditions.
• This transaction underscores the heightened valuations and strategic imperative of AI infrastructure companies such as Scale AI; investors should evaluate the broader implications for competition, M&A trends, and investment opportunities within the artificial intelligence sector.