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Meta to Acquire 49% Stake in Scale AI for Nearly $15 Billion, Reports Say

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Meta Platforms is reportedly set to purchase a 49% stake in AI data-labeling startup Scale AI for approximately $14.8 billion, according to The Information. The deal, which remains unfinalized, highlights Meta’s intensified efforts to strengthen its artificial intelligence capabilities amid mounting competition in the AI race.

Founded in 2016, Scale AI specializes in providing large volumes of labeled and curated training data essential for developing advanced AI tools, including those powering models like OpenAI’s ChatGPT. Scale AI’s investors, including Accel, Index Ventures, Founders Fund, and Greenoaks, are expected to benefit significantly from the deal.

Under the agreement, Scale AI CEO Alexandr Wang is expected to join Meta in a leadership role, heading a new “superintelligence” lab within the company. This move aligns with Meta CEO Mark Zuckerberg’s push to recruit top AI talent and accelerate innovation, especially after Meta’s recent Llama 4 models underperformed relative to expectations.

Meta’s ambitious plans include the forthcoming release of its major AI model, dubbed “Behemoth,” which has faced delays due to performance concerns, as reported by the Wall Street Journal. The company is also navigating ongoing antitrust scrutiny related to past acquisitions like Instagram and WhatsApp.

Industry analysts note that the deal’s structure may be designed to minimize regulatory hurdles, addressing heightened scrutiny of large tech mergers. Scale AI, valued at $13.8 billion in a recent funding round, reported $870 million in revenue in 2024 and forecasts over $2 billion in 2025. The company ended last year with more than $900 million in cash reserves.

Meta’s Zuckerberg Forms New AGI-Focused AI Team Amid Scale AI Investment

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Meta Platforms CEO Mark Zuckerberg is assembling a new artificial intelligence team with a mission to pursue artificial general intelligence (AGI) — AI systems capable of matching or exceeding human-level intelligence — according to a report by Bloomberg News on Tuesday. The move signals Meta’s ambition to compete at the highest level of AI development, alongside rivals like OpenAI.

Zuckerberg is reportedly leading the recruitment of about 50 AI experts to form the AGI group, including searching for a new head of AI research. The effort comes amid Meta’s planned investment of over $10 billion in Scale AI, with Scale AI’s founder Alexandr Wang expected to join Meta’s AGI team once the deal is finalized, Bloomberg reported, citing unnamed sources.

Meta has not yet publicly confirmed the formation of this team. Reuters noted that Meta did not immediately respond to requests for comment.

The creation of the AGI team follows internal dissatisfaction with the performance and reception of Meta’s most recent large language model, Llama 4, according to Bloomberg. Compounding these challenges, the Wall Street Journal previously reported that Meta delayed the release of its flagship “Behemoth” AI model last month due to concerns about its readiness and capabilities.

While Meta continues to build out its Llama series of models and expand AI integration across its platforms like Facebook, Instagram, and WhatsApp, the pivot toward AGI suggests Zuckerberg is positioning Meta to remain competitive as global tech giants race to develop the next generation of AI technology.

Competitors such as OpenAI are also actively seeking additional investment to fuel their AGI research. The AGI race has attracted massive financial commitments, talent acquisitions, and escalating debates about both the promise and risks of creating human-level AI.

Former Meta Executives Raise $15 Million for AI Assistant Startup Yutori

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Two former Meta artificial intelligence executives, Devi Parikh and Dhruv Batra, have secured $15 million in funding for their AI assistant startup, Yutori. The funding round was led by Radical Ventures’ Rob Toews, with contributions from Felicis, AI pioneer Fei-Fei Li, and Google DeepMind’s Jeff Dean.

San Francisco-based Yutori is developing autonomous AI agents capable of executing tasks independently, a growing trend in AI innovation. Unlike current chatbots that primarily facilitate conversations, Yutori aims to create AI assistants that actively perform tasks, such as managing travel logistics and automating online transactions.

The company is leveraging post-training techniques to enhance AI models’ ability to navigate the web and execute complex reasoning tasks. Yutori’s team includes experts who played key roles in Meta’s AI advancements, including researchers behind Llama 3 and Llama 4, as well as embodied AI projects designed for robotics.