Meta Set to Invest Over US$10 Billion in Scale AI to Strengthen Data Capabilities
Meta Platforms Inc is reportedly preparing a multibillion-dollar investment in Scale AI, a leading data infrastructure firm at the heart of artificial intelligence (AI) development. The potential deal, which may exceed US$10 billion (RM42.35 billion), would mark one of the largest private funding rounds in history and solidify Scale’s position as a cornerstone of the AI ecosystem. Founded by 28-year-old Alexandr Wang, Scale AI has become a critical player in the AI supply chain, focusing on one of the three foundational elements of the technology—data—alongside computing power and talent. Wang, who recently testified before Congress, urged US lawmakers to support a national AI data reserve, ensure sufficient energy for data centres, and avoid a fragmented state-level regulatory landscape. His influence in both technological and policy circles is rapidly growing. Although less widely known than OpenAI’s Sam Altman, Wang shares a similar trajectory. Both founded their companies nearly a decade ago and foresaw the coming wave of AI innovation. Like OpenAI, which secured a landmark investment from Microsoft, Scale has emerged as a pivotal enabler of next-generation AI. The company, most recently valued at US$14 billion in 2024, had already attracted Meta’s backing during a prior funding round. Scale’s evolution reflects the broader transformation of the AI sector. Originally focused on labelling images for autonomous vehicles, the company now curates vast volumes of textual data that underpin large language models such as ChatGPT. These models require immense datasets to train algorithms capable of emulating human reasoning. While Scale has faced criticism over its labour practices—particularly its reliance on low-paid contractors in countries like Kenya and the Philippines—Wang has defended the firm’s compensation levels, stating in 2019 that workers were paid within the 60th to 70th percentile of local wages. More recently, a spokesperson noted that the US Department of Labor had closed an investigation into the company’s labour practices. As synthetic, AI-generated data becomes more prevalent, Scale has adapted by enlisting highly qualified contributors. The company now employs professionals with PhDs, MBAs, law degrees and other advanced qualifications to guide AI through reinforcement learning techniques. These experts construct complex problem sets that help improve model performance in domains such as medicine, law, and international tax compliance. By early 2025, 12% of Scale’s workforce involved in model refinement held PhDs in fields like molecular biology, while over 40% held postgraduate degrees in various disciplines. The strategic use of expert-led training is helping Scale address the growing demand for sophisticated, human-like AI capabilities, particularly in the wake of the Chinese firm DeepSeek’s emergence as a major competitor in early 2025. Revenue at Scale has soared alongside the industry’s expansion. The company generated approximately US$870 million in 2024 and is projecting to more than double that figure to US$2 billion this year, according to Bloomberg News. Scale has also strengthened its ties with the US government, particularly in the defence sector. Wang, known for his strong stance on US-China tech competition, has become increasingly engaged with lawmakers concerned about national security. Michael Kratsios, a former Scale executive, now advises President Donald Trump on AI policy, underscoring Scale’s influence in Washington. For Meta, a deeper partnership with Scale represents both a technological and strategic advantage, allowing it to compete more effectively with rivals like OpenAI and Google while also expanding its footprint in defence-related AI. For Wang, the investment signifies a symbolic milestone. He once recounted that his entrepreneurial aspirations were fuelled by The Social Network, the film chronicling Facebook’s early days—bringing the Meta connection full circle. -Bloomberg
