Meta AI investment hits $15B to recover after Llama 4 fails

Key Points

• Meta AI investment hits $15B to recover after Llama 4 fails
• Scale AI now valued at $29B, doubling from last year
• Scale’s co-founder Alexandr Wang joins Meta’s AI team
• Meta aims to close AI gap after Llama 4 underperforms

Meta is making a bold $15 billion move to stay competitive in the rapidly evolving AI landscape. The tech giant has invested heavily in data-labeling startup Scale AI, a key player in helping AI models perform better through high-quality training data.

The deal values Scale AI at $29 billion, doubling its valuation in just a year. As part of the agreement, Meta will now own a 49% stake in the company. Scale’s co-founder and CEO, Alexandr Wang, will join Meta’s AI division to work on strengthening its artificial intelligence models. However, his exact role at Meta remains undisclosed.

Here’s why Zuck is desperately dropping $15 BILLION on a 28-year-old.

Meta has been losing the AI race badly.

Several product releases fell flat.

Top researchers have been leaving for rival companies. pic.twitter.com/Q1oGclEky1

— Fernando Cao (@thefernandocz) June 11, 2025

Meta’s investment also marks a growing trend where major tech firms not only invest in AI startups but also acquire top talent. Industry watchers see this as a critical strategy to accelerate AI breakthroughs.

Meta CEO Mark Zuckerberg is under pressure to catch up with AI leaders like OpenAI, Microsoft, and Google. Despite pouring billions into AI, Meta’s latest large language model, Llama 4, has failed to impress. Independent benchmarks show that it lags behind competitors in reasoning and coding tasks—a major concern for a company aiming to lead in AI.

With this $15 billion bet on Scale AI, Zuckerberg hopes to shift the momentum in Meta’s favor.

Wow! Meta paying $15B for a 49% stake in Scale AI that pays out investors and employees.

CEO Alexander Wang leaving to join Meta and head up Superintelligence lab

Feels like those “license and acquire” deals at Character AI, Inflection and Adept to avoid regulatory scrutiny? pic.twitter.com/VBefORo1vh

— Tanay Jaipuria (@tanayj) June 10, 2025

Meta and Scale AI eye the future of superintelligence

Scale AI has grown from a humble data-labeling company to a central player in today’s AI boom. Its technology ensures that data—whether images or text—is properly labeled and ready for training AI models. High-quality data is critical in building models that can reason, code, and even mimic human intelligence.

Scale’s revenues are expected to hit $2 billion this year, largely driven by partnerships with companies like OpenAI. The deal will also deliver big returns to Scale’s early investors, including Accel, Tiger Global Management, and Index Ventures. Tiger’s $200 million investment alone is now worth over $1 billion.

🔥 Zuck’s done waiting.

Meta’s betting $14B on Scale AI—and hiring Alexandr Wang to lead its new AI lab.

Why it matters:

🚫 Avoids antitrust (49% stake)

🔐 Locks in elite data pipelines

⚔️ Moves fast against OpenAI + DeepSeek

Wartime energy. Real money. The AI war is on. pic.twitter.com/5QqC8gJc57

— Phil Chen (@PhilChen22) June 11, 2025

Alexandr Wang, who is only 28, is seen as a rising star in Silicon Valley. He has built strong ties with key figures such as OpenAI’s Sam Altman. While Wang will remain on Scale’s board, Jason Droege—known for launching Uber Eats—will take over as Scale’s Chief Strategy Officer.

Meta’s latest move is part of Zuckerberg’s larger ambition to develop “superintelligence”—AI systems that surpass human-level intelligence. Speaking at VivaTech in Paris this week, Meta’s chief AI scientist Yann LeCun reiterated that the company’s goal is to eventually exceed human intelligence.

Meta is also planning to spend most of its massive $72 billion capital budget this year on AI-related infrastructure, such as data centers and servers. This level of investment underscores just how fiercely competitive the AI space has become.

The $15 billion Scale AI deal mirrors similar aggressive strategies by other tech giants. Microsoft spent $650 million last year to secure talent and tech from Inflection AI.

Google paid $2.7 billion for a deal with Character.AI. Meanwhile, the industry is watching legal battles unfold, such as Reddit suing Anthropic over AI training data—highlighting just how valuable high-quality data has become.

This is the type of bet that only founder led companies can make:

“Meta is reportedly investing nearly $15B in the data-labeling firm Scale AI and taking a 49% stake in the startup, while also bringing on CEO Alexandr Wang to help lead a new “superintelligence” lab within the…

— Inaki Berenguer (@inakib) June 12, 2025

Meta’s talent war intensifies with Scale AI hire

Meta’s acquisition of Alexandr Wang is not just about data—it’s about talent. In today’s AI world, experienced leaders and elite engineering teams are more valuable than ever.

Wang will join Meta’s AI division as it struggles to close the gap with rivals. The company has been actively trying to poach top researchers and engineers, with Zuckerberg recently forming a new “superintelligence” team. Hiring Wang is a significant step in this direction.

Meanwhile, other tech giants are deploying similar strategies. Microsoft’s recruitment of Mustafa Suleyman from Inflection AI and Google’s $2.7 billion deal with Character.AI reflect a broader industry pattern: investing in both talent and IP simultaneously.

With Wang now on board, Meta hopes to create a stronger foundation for its next-generation AI models. The company knows that without top minds driving innovation, no amount of data or hardware will be enough to dominate this fast-moving field.

As competition intensifies, other players are also exploring new AI applications—like AI-driven weather models and innovations in unexpected sectors, such as Microsoft’s plans for an Xbox handheld, which shows how AI is influencing nearly every corner of tech.