At $14.3 billion, this investment represents Meta’s largest investment to date. For the tech giant and the AI startup, the $650 million deal represents a major milestone. Per the terms of this agreement, Meta will take a 49% ownership position in Scale AI without any voting rights. This strategic move aims to enhance Meta’s artificial intelligence capabilities, especially as CEO Mark Zuckerberg prioritizes AI development leading into 2025.
Alexandr Wang, the founder and CEO of Scale AI, has announced his resignation. He will be joining Meta to provide leadership over large-scale AI initiatives that are critical to guiding the company’s overall long-term success. Wang’s departure comes just weeks after their dramatic investment agreement together and marks a surreal turning point for both companies. Scale AI intends to elevate its current chief strategy officer, Jason Droege, to the CEO role. Droege was most recently a venture partner at Benchmark and before that was a vice president at Uber.
Wang posted a memo to employees on X explaining his departure. Nevertheless, he saw the huge opportunities that the deal now offers. He stated, “As you’ve probably gathered from recent news, opportunities of this magnitude often come at a cost.” He elaborated on his sentiments, saying, “In this instance, that cost is my departure. It has been the absolute greatest pleasure of my life to serve as your CEO.”
Meta’s investment in Scale AI is particularly noteworthy given that Meta is one of Scale AI’s largest clients. The move is intended to shore up Meta’s AI plays. This is in direct response to the trouble the company recently experienced with its new Llama Ai models. Unsurprisingly, developers have been less enthusiastic in their response, leading to escalating disappointment from Zuckerberg. In fact, he’s deeply frustrated with his team’s performance on this front.
This is filing from Wang’s recent appearance on CNBC’s Squawk Box during the World Economic Forum in Davos, Switzerland, on January 23, 2025. His testimony in that hearing underscored the urgency and significance of innovation to an AI-fueled future and opened the door for doing so.
As Zuckerberg intensifies his focus on artificial intelligence, this partnership may play a crucial role in reshaping Meta’s future endeavors in the tech space. Wang’s expertise is currently fueling AI initiatives at Meta. All of us are looking ahead to major breakthroughs poised to change the course of the entire tech sector.