Meta Could Spend Majority Of AI Budget On Scale As Part Of $14 Billion Deal

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Meta Could Spend Majority Of AI Budget On Scale As Part Of $14 Billion Deal
Alexandr WangMetaArtificial Intelligence
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Forbes has learned the deal includes a provision to establish a 5-year commercial agreement in the hundreds of millions annually.

Last night, Scale AI announced that Meta would acquire a 49 percent stake in it for $14.3 billion — a seismic move to support Meta ’s sprawling AI agenda.has learned that Meta intends to pay Scale at least $450 million a year for five years for its AI products, or more than half of its annual AI spend, whichever is less, according to a person who worked on the deal.$870 million in revenue, largely driven by demand for its data labelling services.

The Meta deal is a major and unexpected turning point for Scale, which Wang has led since its founding in 2016. During his tenure, Scale built an army of clickworkers to train AI data models, which proved an essential tool for AI giants building LLMs and other applications.

Now, under new CEO Jason Droege, who launched Uber Eats, and previously was an executive at law enforcement technology company Axon, Scale — which some had hoped might be a 2025 IPO candidate — has tethered its future and founder to Meta’s AI ambitions.

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