Scale AI has confirmed a major investment from Meta, valuing the data-labeling company at $29 billion. As part of the deal, co-founder and CEO Alexandr Wang will step down from his leadership role to join Meta, where he will contribute to the company’s advanced AI initiatives, particularly in the development of superintelligent systems. The investment, reported to be around $14.3 billion for a 49% stake, marks a significant strategic move by Meta to strengthen its position in the rapidly evolving AI landscape. Scale AI has long been a key player in the AI supply chain, providing the high-quality, meticulously labeled data essential for training large language models used by leading AI labs. Meta confirmed the partnership, stating it will deepen collaboration with Scale to enhance data production for AI models. The company also noted that Wang will transition to a role at Meta, where he will work on its most ambitious AI research efforts. More details about the team and the initiative are expected in the coming weeks. Jason Droege, Scale’s current Chief Strategy Officer, will take over as interim CEO. The company emphasized that it remains an independent business. Wang will continue to serve on Scale’s board of directors, maintaining a connection to the company he co-founded. The funding will be used to return capital to investors and shareholders, as well as to fuel future growth. In recent months, Scale has intensified its hiring, bringing in top-tier talent such as PhD scientists and senior software engineers to meet the growing demand for high-quality training data in frontier AI research. This investment comes at a time when Meta is working to close the gap with competitors like OpenAI, Google, and Anthropic, whose AI model releases have outpaced Meta’s. According to data from SingalFire, Meta lost 4.3% of its top AI talent to other labs in the past year, underscoring the urgency of securing strategic partnerships and talent. Scale AI raised $1 billion in 2023 from investors including Amazon and Meta, at a valuation of $13.8 billion. The new deal highlights the increasing importance of data infrastructure in the AI race and the growing reliance of major tech firms on specialized data providers. Nature is pleased to acknowledge financial support from FII Institute in producing this story. Nature retains sole responsibility for all editorial content. FII Institute is a global non-profit foundation with an investment arm, dedicated to creating positive impact on humanity. Committed to ESG principles, the institute supports innovation in five key areas: AI and Robotics, Education, Healthcare, and Sustainability. Through its three pillars—THINK, XCHANGE, ACT—FII Institute empowers the brightest minds to turn ideas into real-world solutions. The organization brings together decision makers, investors, and a dynamic generation of youth to co-create a more sustainable and equitable future. Learn more at the FII Institute website.