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Meta is reportedly in discussions to invest more than $10 billion into Scale AI, a data-labeling and AI infrastructure firm whose software and contractor networks power models for companies like Microsoft, OpenAI, and Meta itself. If finalized, the deal would mark the largest external AI investment by Meta to date and one of the most substantial funding events for a private company globally.
Scale AI, led by 28-year-old CEO Alexandr Wang, is already valued at $14 billion after a recent $1 billion Series F round, in which Meta was a participant.
From Street Signs to Strategic Models
Scale AI began by labeling street images to train self-driving car systems, but has evolved into a critical player in training large language models (LLMs) through the curation of massive datasets. Its services now extend to reinforcement learning using highly educated contractors — including PhDs and nurses — to improve model accuracy in complex tasks. In collaboration with Meta, Scale recently launched Defense Llama, a military-specific LLM based on Llama 3, underlining its expanding scope into defense and national infrastructure.
Labor Scrutiny and the Invisible Backbone of AI
Scale’s global contractor network, especially in regions like Kenya and the Philippines, has drawn criticism over low wages and psychological tolls from reviewing disturbing online content. Despite this, the U.S. Department of Labor recently closed its investigation into the company’s labor practices.
CEO Wang has stated that wages are in the top percentile for local markets, and the company has shifted toward better-compensated roles for reinforcement learning tasks.
Strategic Alignment with U.S. AI Policy and Global AI Competition
Wang has emerged as a central voice in shaping U.S. AI policy, advocating before Congress for a national AI data reserve, consistent regulatory frameworks, and infrastructure investment. His alignment with U.S. strategic goals in AI and defense has strengthened Scale’s positioning. The $10 billion investment would not only cement Meta’s reliance on Scale but also signal Washington’s quiet approval of the firm’s role in keeping U.S. AI competitive against rivals like China’s DeepSeek.
