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Investing.com -- Meta (NASDAQ:META) has agreed to acquire a 49% stake in data labeling firm Scale AI for $14.8 billion, according to a report from the Information, citing two people familiar with the matter.
The deal will be structured in an unusual way, with Meta sending cash directly to Scale’s existing shareholders while placing Scale’s CEO, Alexandr Wang, in a senior position within Meta.
Earlier reports from the weekend had indicated the investment would exceed $10 billion.
The transaction, which has not yet been finalized, represents a significant gain for Scale’s shareholders, including major investors such as Accel, Index Ventures, Founders Fund, and Greenoaks Capital, as well as current and former employees. These shareholders will maintain their existing holdings in Scale, which will now be valued at $28 billion, including the cash invested. This marks an increase from the company’s $13.8 billion valuation last year.
As part of the arrangement, Meta plans to put Wang in charge of a new "superintelligence" lab, along with other top Scale technical employees, as reported by the New York Times (NYSE:NYT) and Bloomberg on Tuesday. This move will position Wang, who is 28 years old, in competition with some of his customers and friends, including OpenAI CEO Sam Altman. The deal is expected to further increase the wealth of Wang, who became the youngest self-made billionaire in the U.S. several years ago.
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