Meta has invested $14.3 billion into Scale AI, a company that provides labeled data used to train artificial intelligence (AI) systems.
This deal, announced on June 12, gives Meta a 49% ownership stake in Scale AI and values the company at more than $29 billion.
Rather than buying the company outright, Meta chose to become a large minority investor, which helps Scale AI remain independent and may reduce the risk of increased scrutiny from regulators.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
Bullish vs Bearish Markets: How to Predict it? (Animated)
Scale AI works by hiring people, many of them based outside the US, to tag and sort data that trains AI systems. Its clients include tech companies like Google and OpenAI. These data-labeling tasks help AI models learn how to understand and respond to the world.
Meta has said the partnership will strengthen its own efforts to build better AI by improving how it produces and uses this kind of training data.
Alexandr Wang, the 27-year-old founder of Scale AI, shared in a June 13 post on X that he will step down from his CEO role to launch a new research group within Meta focused on developing “superintelligence”, or artificial general intelligence (AGI).
He will remain on Scale AI’s board of directors. In the meantime, the company’s Chief Strategy Officer, Jason Droege, will take over as interim CEO.
Wang told Scale employees that the investment was a major milestone for the company and a sign of how far their work has come.
Mattel, the company behind brands like Barbie and Hot Wheels, recently announced a partnership with OpenAI. What is the goal of the collaboration? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
