In a stunning shake-up in the tech world, Meta has invested a massive $14.3 billion to acquire a 49% stake in Scale AI, a data-labeling startup valued at $29 billion. But the real headline is the recruitment of Scale’s 28-year-old CEO, Alexandr Wang, who will now lead Meta’s ambitious superintelligence efforts.
Wang, once hailed as one of Silicon Valley’s youngest billionaires, founded Scale after dropping out of MIT. His move to Meta signals a shift in the company’s AI strategy, as CEO Mark Zuckerberg bets on business-savvy leadership rather than research backgrounds to regain dominance in the AI race.
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Though Wang will remain on Scale’s board, the startup has appointed Jason Droege as interim CEO. A few employees from Scale will also transition to Meta alongside Wang. The investment marks Meta’s second-largest ever, following its $19 billion WhatsApp acquisition.
Industry insiders say the move could stir up concerns among Scale’s existing clients, worried about potential conflicts of interest. Still, early investors like Accel and Index Ventures are expected to benefit from a strong return on their stakes.
