Meta Invests $14.3B in Scale AI, CEO Alexandr Wang Joins Company

Meta has made a major strategic move in the AI sector by investing approximately $14.3 billion for a 49% stake in Scale AI, valuing the startup at $29 billion. This investment is part of Meta CEO Mark Zuckerberg's hands-on effort to revamp the company's AI ambitions following the underwhelming reception of its Llama 4 model. Scale AI’s CEO and co-founder, Alexandr Wang, will step down to join Meta, leading a new elite AI research team focused on developing artificial general intelligence and superintelligence, while the startup remains operationally independent with its Chief Strategy Officer Jason Droege as interim CEO. Meta is actively recruiting top AI talent from rivals like Google and Sesame, offering lucrative compensation to build a team of around 50 researchers, aiming to close the gap with competitors such as OpenAI and Google. This initiative is coupled with a broader strategy emphasizing investments in data, chips, and human expertise to strengthen Meta’s AI capabilities in areas like voice and personalization. The move signals Meta's urgent attempt to regain momentum in the competitive AI landscape amid rapid advancements by other industry leaders.