Can Scale AI and Alexandr Wang Revive Metas AI Ambitions?

Meta is reportedly investing nearly **$15 billion** into Scale AI, a data labeling company, and acquiring a 49% stake in the startup. Additionally, they are bringing in CEO Alexandr Wang to lead a new «superintelligence» lab within the company.

This move is reminiscent of Meta’s previous bold and risky investments, such as the purchase of WhatsApp for **$19 billion** and Instagram for **$1 billion**. At the time of those acquisitions, many speculated that Meta had overpaid for these platforms, and similar sentiments are emerging regarding this latest merger, leaving many investors and entrepreneurs puzzled over Meta’s decision.

In the end, WhatsApp and Instagram became integral components of CEO Mark Zuckerberg’s empire. The critical question now is whether the Scale AI deal will benefit Meta, affirming Zuckerberg’s strategic foresight, or if the company is merely grasping at straws in a futile attempt to catch up with competitors like OpenAI, Google, and Anthropic.

Unlike previous investments in social media applications, Meta is focusing on data crucial for training advanced AI models. In recent years, leading AI labs such as OpenAI have relied on Scale AI for data generation and labeling, while Scale AI and its competitors have begun hiring highly skilled professionals, including PhDs and senior software engineers, to produce high-quality datasets for top AI laboratories.

A strong partnership with a data provider like Scale could greatly benefit Meta. Insiders report that Meta executives have voiced concerns over the lack of data innovation within the company’s leading AI teams.

Earlier this year, Meta’s generative AI division launched Llama 4—a series of AI models that didn’t quite match up to the capabilities of DeepSeek, a Chinese AI lab, which has been viewed as a disappointment. Compounding this issue, Meta is also struggling with employee turnover; according to data from SignalFire, **4.3% of its top talent** departed for AI labs in 2024.

Meta is not only investing in Scale AI to boost its AI initiatives but is also banking on Wang, who will lead the aforementioned new superintelligence team. At 28, Wang has proven himself to be a formidable startup founder, recognized in Silicon Valley as an ambitious individual with strong sales skills and connections. Over the last few months, Wang has been engaging with global leaders to discuss the societal impacts of AI.

However, it’s worth noting that Wang has not previously managed a similar AI lab and lacks the extensive AI research experience that many other lab leaders possess, such as Ilya Sutskever from Safe Superintelligence or Arthur Mensch from Mistral. This might explain why Meta is also hiring renowned experts, including **Jack Ray from DeepMind**, to bolster its new AI research team.

The future of Scale AI post-acquisition appears somewhat uncertain. The role of real data in training AI models is evolving; some AI labs are now focusing on internal data collection, while others are leaning more towards synthetic (i.e., AI-generated) data. In April, The Information reported that Scale AI had **failed to meet its revenue targets**.

According to Robert Nishihara, co-founder of Anyscale, several leading AI labs are exploring new methods of data utilization and optimization, many of which require significant computational power.

“Data is a moving target,” said Nishihara in an interview with TechCrunch. “It’s not just a race to catch up—it’s about innovating.”

Meta’s relationship with Wang may deter other AI labs that traditionally partnered with Scale AI. If so, this deal could turn out to be advantageous for Scale AI’s competitors, such as Turing, Surge AI, and even unconventional data suppliers like the recently launched LM Arena.

Turing CEO Jonathan Siddhart told TechCrunch via email that interest in his company has surged in light of the rumors regarding Meta and Scale AI’s deal.

“I believe customers may prefer to work with a more neutral partner,” he stated.

Only time will tell how Meta’s investments will shape the future of AI, but the road ahead is long. Meanwhile, competition remains fierce. OpenAI is preparing to launch its next flagship model, GPT-5, along with the first publicly available model in years, which will compete with both current and upcoming versions of Meta’s Llama.

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[Source](https://techcrunch.com/2025/06/11/can-scale-ai-and-alexandr-wang-reignite-metas-ai-efforts/)