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Meta takes $15 billion stake in Scale AI in bid to catch competitors

Meta has agreed to pay $14.8 billion for a 49 percent stake in the artificial intelligence data firm Scale AI in one of the biggest acquisitions the social media giant has made since its 2014 deal to buy WhatsApp, according to a person familiar with the matter. The arrangement with Scale AI, which could be announced as soon as Wednesday, will give the start-up’s CEO, Alexandr Wang, a senior position at Meta leading a team focused on developing super intelligence, said the person, who spoke on the condition of anonymity to discuss private company matters. Super intelligence describes a hypothetical technology that could perform better than humans at all tasks. Meta, which is an existing Scale AI customer, is expected to expand its use of the company’s data-labeling services, the person said. The deal was reported earlier by the Information. The New York Times and Bloomberg News earlier reported Meta’s decision to create a new AI lab. Meta and Scale AI declined to comment. The deal will give Meta more access to Scale AI’s services, which have shifted over the years. The company first specialized in connecting large tech companies with human contractors to label the massive amounts of data necessary to train AI models, focusing on self-driving vehicles and relying on “digital sweatshops” in areas such as the Philippines.

Full report : A frustrated Zuckerberg makes his biggest AI bet as Meta nears $14 billion stake in Scale AI, hires founder Wang.

For more see the OODA Company Profile on Scale AI.

Tagged: AI Meta Scale AI