• Meta invests $14.3 billion in Scale AI, valuing the startup at $29 billion.
• Alexandr Wang, Scale AI's co-founder, joins Meta to lead a new superintelligence unit.
• The investment is part of Meta's strategy to regain its footing in AI amidst stiff competition.

Meta Platforms has made a substantial investment of $14.3 billion in Scale AI, a data-labeling startup, which subsequently raises Scale's valuation to over $29 billion. As part of this strategic investment, Alexandr Wang, the 28-year-old CEO and co-founder of Scale AI, will transition to lead Meta's new superintelligence unit, which aims to develop artificial intelligence systems that match or surpass human intelligence, according to Channel News Asia.

According to reports, the purpose of Meta's substantial investment is not only to acquire a significant 49% stake in Scale AI but also to secure Wang’s leadership amidst an era where technological advancements in AI have become crucial. Meta intends to deepen its collaboration with Scale AI to enhance data production for AI models, as shared in a statement by Meta and reported by The Hill and India Times.

Alexandr Wang, who has built Scale AI from its inception in 2016 into a prominent player in AI data services, emphasized his commitment to Scale even after joining Meta. He stated in his message to employees, “I will never leave Scale behind,” asserting his intention to remain on Scale's board of directors, according to reports by India Times and Channel News Asia.

This partnership arrives as Meta seeks to bolster its AI capabilities to compete against major players like OpenAI and Google that have been advancing rapidly. With the establishment of a new research lab under Wang’s leadership, Meta aims to leverage Scale AI’s innovative data solutions to enhance its AI model production, as detailed in articles from India Times and The Hill.

This monumental investment also represents Meta's second-largest deal in its history, following the $19 billion acquisition of WhatsApp. It illustrates a critical pivot in Meta's strategy to revitalize its presence in the competitive AI landscape, addressing internal challenges and aiming for greater innovations in AI technology, as highlighted by India Times and Channel News Asia.