Meta is reportedly in talks to make a significant investment in Scale AI, with estimates suggesting the deal could be worth over $10 billion, according to Bloomberg. This would not only mark the largest external AI investment by the social media giant's parent company but also stand as one of the largest funding rounds ever for a private firm. Scale AI, led by CEO Alexandr Wang, specializes in providing data labeling services to prominent tech companies like Microsoft and OpenAI. These services are crucial for training AI models, ensuring they can accurately interpret and respond to real-world data. Much of the labeling work is performed by contractors, a practice that had previously attracted attention from the Department of Labor regarding employee classification and pay. However, the department recently concluded its investigation without taking action against Scale AI. Bloomberg reports that Scale AI generated $870 million in revenue last year and projects a substantial increase to $2 billion in revenue for the current year. Meta has already been involved with Scale AI, having participated in a $1 billion Series F funding round that valued the company at $13.8 billion. In addition to its commercial ventures, Scale AI has ventured into specialized applications such as the development of Defense Llama, a large language model tailored for military use. This model was built using Meta’s Llama 3, highlighting the growing synergy between the two companies. The potential investment underscores Meta’s commitment to advancing AI capabilities, both for its own platforms and for broader industry applications. If finalized, this deal could significantly bolster Meta’s position in the AI landscape and accelerate innovation across various sectors.