Meta Platforms Inc. is preparing for one of the largest private AI investments ever recorded. The tech giant is in advanced talks to commit over $10 billion to Scale AI, a fast-growing artificial intelligence startup central to training data infrastructure. According to sources familiar with the matter, the discussions are still ongoing, but if the deal is completed, it could dramatically alter Meta’s external AI strategy and crank up Scale’s already fast growth.
This change represents a shift for Meta AI to embrace more external partnerships after years of mostly relying on internal research and open-source developments. With a multibillion-dollar mark indicating a heightened sense of urgency internally at Meta to narrow the gap with cloud-dominating competitors like Microsoft, Amazon, and Google, we can expect a lot of change in external investment next year.
Meta Shifts Gears Toward External AI Growth
Until now, Meta’s AI journey has been built mostly in-house. Its Llama AI model and chatbot tools already power interactions across Facebook, Instagram, and WhatsApp for over a billion monthly users. Yet, as the AI race accelerates, Meta is changing direction. Unlike Microsoft’s $13 billion stake in OpenAI or Amazon’s backing of Anthropic, Meta has avoided large outside bets.
That may now be changing. With Meta budgeting up to $65 billion for AI projects in 2025, this possible Scale AI funding round would mark a clear break from tradition. The absence of a cloud platform like AWS or Azure means Meta must partner differently. It’s unclear whether the investment would involve equity, computing credits, or a hybrid model. Still, this push underlines CEO Mark Zuckerberg’s public commitment to make AI Meta’s top focus.
Scale AI Emerges as a Strategic Powerhouse
Founded in 2016 by Alexandr Wang, Scale AI has quickly emerged as a leading force in AI infrastructure. The company is focused on data labeling, cleaning, and tagging huge datasets that are necessary for training machine learning models. Its client list includes Microsoft, OpenAI, and the U.S. government. Valued at $14 billion in 2024, Scale is reportedly exploring new funding at a $25 billion valuation.
The upcoming Scale AI funding round could exceed all previous records in the sector. In 2024, Scale earned $870 million in revenue and is on track to hit $2 billion in 2025. Its core value lies in solving one of AI’s hardest problems: data quality. AI systems only perform as well as the data they train on, and Scale’s workforce and platform offer companies an edge in generating highly structured, human-reviewed training sets.
Defense Llama and Meta’s Military Expansion
This partnership extends beyond commercial AI. Meta and Scale have already begun to work together on Defense Llama, a variant of the Meta Llama large language model made for military use. The development of such a tool is part of a broader strategy to develop AI-related whiz bangs for the U.S. Department of Defense. Last week, Meta announced another partnership with defense contractor Anduril Industries to create an AI-powered headset for military applications. The headset combines virtual and augmented reality, backed by Meta’s Llama architecture.
Scale AI is already under contract with the Pentagon to work on AI agent development. The startup called this deal a “milestone in military advancement.” Its ability to supply high-quality data for sensitive projects makes it a trusted partner in civilian and defense AI use cases.
Meta’s Biggest Bet Yet on AI Infrastructure
If finalized, the deal would be the largest external AI investment in Meta’s history. It signals a new phase in the company’s AI roadmap—one that prioritizes strategic partnerships, dual-use applications, and enterprise-scale infrastructure over internal-only R&D.
As Meta AI pushes to make Llama the industry standard and scale its generative tools globally, partnering with Scale may give the company the foundation to keep up with fast-moving rivals. The rumored Scale AI funding round may not only boost the startup’s valuation. It will also position Meta as a more serious player in both commercial and defense AI landscapes.
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