Meta Platforms has made a major move in the AI space by investing$14.8 billion in Scale AI, acquiring a 49% stake and pushing the data-labelling startup's valuation past$29 billion.

As part of the deal, Scale AI founder Alexandr Wang will join Meta's leadership to head its new superintelligence unit, while continuing to serve on Scale AI's board. The investment deepens Meta's commercial ties with Scale and is seen as a strategic step to secure top-tier AI expertise.

Scale AI will use the funds to drive innovation and strengthen client partnerships, while also providing partial liquidity to shareholders and equity holders. Jason Droege, Scale's Chief Strategy Officer and former Uber Eats executive, will serve as interim CEO.

'This partnership is a testament to our team's work and the scale of opportunity ahead,' said Droege. Wang added, 'Meta's investment affirms the limitless path forward for AI and Scale's role in bridging human values with transformative technologies.'

Scale will remain independent, continuing to support AI labs, corporations, and government agencies with data infrastructure as the race for AI dominance intensifies.