Meta in Talks to Invest in Scale AI

Artificial Intelligence

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Scale AI, an artificial intelligence start-up, has built a business by labeling and culling data to make it easier to use to train A.I. systems.

By Mike Isaac

Mike Isaac covers Silicon Valley from San Francisco.

Meta, which owns Facebook and Instagram, is in advanced talks to invest billions of dollars in Scale AI, a start-up focused on data used by artificial intelligence companies, according to two people with knowledge of the matter.

The potential investment is a sign that large tech companies remain interested in start-ups focused on A.I. amid a heated contest to be a leader in the Tech. If an investment happens, it will be an outlier for Meta, which typically does not invest in outside companies.

Meta and Scale declined to comment. Bloomberg reported earlier on the talks.

Mark Zuckerberg, Meta’s chief executive, has pushed heavily into A.I. in recent years. Since OpenAI released its ChatGPT chatbot in late 2022, Mr. Zuckerberg has leaned into incorporating A.I. across Meta’s products, including in smart glasses and a recently released app, Meta AI.

Founded in San Francisco by Alexandr Wang and Lucy Guo in 2016, Scale AI built a business with armies of contract workers who sift through vast amounts of data, labeling and “cleaning” the information to make it easier to use to train A.I. systems. Scale sells its services to companies like Microsoft, Cohere, Etsy and OpenAI.

Scale AI has raised more than $1 billion from a mix of investors, including the venture capital firms Index Ventures and Founders Fund.

More recently, Scale AI has worked to build its enterprise and public sector businesses, dispatching consultants and engineers to work with companies and governments to help build programs that use A.I.

In recent years, Meta has encouraged programmers to use its freely available open source A.I. models to build A.I. apps across the private and public sectors.

In November, Meta revealed that it would allow U.S. government agencies and contractors working on national security to use its A.I. models for military purposes, a shift from its previous policy. The company teamed up with the defense contractors Booz Allen and Lockheed Martin on the initiatives, along with start-ups including Scale.

Mike Isaac is a Tech correspondent for The Times based in San Francisco. He regularly covers Facebook and Silicon Valley.

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