Information-labeling firm Scale AI confirmed on Friday that it has acquired a “vital” funding from Meta that values the startup at $29 billion. The startup additionally stated its co-founder and CEO Alexandr Wang is stepping down from his function to affix Meta and assist the larger firm with its AI work.
Reviews point out that Meta invested about $14.3 billion for a 49% stake within the startup, which produces and labels knowledge that’s used to coach the big language fashions that underpin a good portion of generative AI improvement.
Meta confirmed the funding. “Meta has finalized our strategic partnership and funding in Scale AI. As a part of this, we’ll deepen the work we do collectively producing knowledge for AI fashions and Alexandr Wang will be part of Meta to work on our superintelligence efforts. We are going to share extra about this effort and the nice individuals becoming a member of this workforce within the coming weeks,” a spokesperson for Meta advised TechCrunch.
Jason Droege, Scale’s present chief technique officer, will hop in as interim CEO. Scale AI famous that Meta’s funding shall be used to pay traders and shareholders, in addition to to gasoline development. The corporate emphasised that it stays an impartial entity. Wang will proceed on the data-labeling agency as a director on its board.
As my colleague Max Zeff wrote on Wednesday, this funding is a manner for Meta to enhance its AI efforts as its rivals Google, OpenAI and Anthropic rush forward, and the social media firm’s personal AI mannequin releases path the competitors. Plus, in accordance with knowledge by SingalFire, the corporate misplaced 4.3% of its high expertise to different AI labs final yr.
For the final a number of years, main AI labs similar to OpenAI have relied on Scale AI to provide and label knowledge that’s used to coach fashions. In latest months, Scale AI and its knowledge annotation rivals have began hiring extremely expert individuals, similar to PhD scientists and senior software program engineers, to generate high-quality knowledge for frontier AI labs.
Simply final yr, Scale AI raised $1 billion final yr from traders together with Amazon and Meta at a valuation of $13.8 billion.
