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Scale AI not 'winding down' following Meta deal, interim CEO tells employees and customers

Scale AI's Interim CEO Jason Droege said in a memo on Wednesday that the artificial intelligence startup is not changing course following Meta's multibillion-dollar investment in the company last week. "Unlike some other recent tech deals you might have heard about in the AI space, this is not a pivot or a winding down," Droege wrote in a post directed at customers, employees and investors. Meta has a 49% stake in Scale after its $14.3 billion investment, though the social media company will n

OpenAI drops Scale AI as a data provider following Meta deal

OpenAI is phasing out its work with Scale AI and cutting ties with the data provider following Meta’s deal with the startup, an OpenAI spokesperson told Bloomberg on Wednesday. Sarah Friar, the chief financial officer of OpenAI, previously suggested the company would continue its work with Scale AI. Now, it appears OpenAI has changed its tone. OpenAI said it was already winding down its work with Scale AI ahead of Meta’s announcement last week that it was investing billions of dollars in the s

Topics: ai data meta openai scale

Scale smarter: 5 days left to save up to $210 on your TechCrunch All Stage pass

Five days until prices rise! Are you ready to scale or stall? Time’s ticking. Ticket prices for TechCrunch All Stage go up after June 22 at 11:59 p.m. PT. Founders save $210, and investors save $200. Register here to fuel your growth with a discount. Join 1,000 founders and investors on July 15 at Boston’s SoWa Power Station for the founder summit built for traction, scale, and next-level growth. Whether you’re scaling your startup or sourcing your next big investment, this is where momentum s

AMD's AI Future Is Rack Scale 'Helios'

Only have a minute? Here are our key takeaways. 🚀 New MI355X GPU: 2x AI FLOPs, more HBM, 40% better tokens/$ than NVIDIA. 🧠 Software Wins: ROCm 7 with big performance boosts and day-0 support. 🖧 Rack-Scale Wins: New turnkey solutions using AMD CPU + GPU + Network. 📈 Roadmap Wins: Next-Gen in 2026 with 4x performance, HBM4 and scale. 🌱 Efficiency Wins: Roadmap to 20× rack-scale energy efficiency by 2030. Thanks for reading More Than Moore! This post is public so feel free to share it. Share

Google reportedly plans to cut ties with Scale AI

In Brief Meta’s big investment in Scale AI may be giving some of the startup’s customers pause. Reuters reports that Google had planned to pay Scale $200 million this year but is now having conversations with its competitors and planning to cut ties. Microsoft is also reportedly looking to pull back, and OpenAI supposedly made a similar decision months ago, although its CFO said the company will continue working with Scale as one of many vendors. Scale’s customers include self-driving car com

New details emerge on Meta’s $14.3B deal for Scale

In Brief Meta’s deal to partially acquire the AI startup Scale, giving it 49% ownership, is certainly unusual. What Scale officially announced is that the deal values the company at over $29 billion and that it will “distribute” proceeds to shareholders and vested equity holders (aka employees) granting them with “substantial liquidity” while allowing them to continue as shareholders. Meta is also hiring Scale’s famed founder CEO Alexandr Wang, who famously dropped out of MIT at age 19 to bui

Meta invests $14.3B in Scale AI to kick-start superintelligence lab

Meta said on Thursday that it planned to invest $14.3 billion in Scale AI, a start-up that works with data to train artificial intelligence systems, in a deal that Meta hopes will add needed muscle to its disappointing A.I. division. As a condition of the deal, Alexandr Wang, Scale AI’s 28-year-old chief executive, plans to join Meta in a top leadership role in the new division, which Meta is calling its Superintelligence lab. Mr. Wang, whom people inside Meta have taken to calling a visionary

Scale AI plans to promote strategy chief Droege to CEO as founder Wang heads for Meta

Scale AI plans to promote Chief Strategy Officer Jason Droege to serve as its new CEO, with founder Alexandr Wang heading to Meta as part of a multibillion-dollar deal with the company, CNBC has confirmed. Meta is finalizing a $14 billion investment into artificial intelligence startup Scale AI, CNBC reported earlier this week. Wang will help lead a new AI research lab at Meta and will be joined by some of his colleagues. The New York Times was first to report about the new AI lab. Bloomberg f

Topics: ai cnbc meta new scale

Meta beefs up disappointing AI division with $15 billion Scale AI investment

Meta has invested $15 billion into data-labeling startup Scale AI and hired its co-founder, Alexandr Wang, as part of its bid to attract talent from rivals in a fiercely competitive market. The deal values Scale at $29 billion, double its valuation last year. Scale said it would “substantially expand” its commercial relationship with Meta “to accelerate deployment of Scale’s data solutions,” without giving further details. Scale helps companies improve their artificial intelligence models by pr

Meta invests $14.8 billion in Scale AI and recruits its CEO

Meta has finalized its $14.3 billion investment in Scale AI, which now values the startup that provides other companies with data labeling and model evaluation services for AI training at $29 billion. As part of the deal, Scale AI's founder and CEO Alexandr Wang will be joining Meta. According to The New York Times, Wang will lead Meta's fledgling "Superintelligence lab." A few days ago, several reports came out that Meta chief Mark Zuckerberg has been personally overseeing the recruitment for a

Meta Invests $14.3B in Scale AI to Kick-Start Superintelligence Lab

Meta said on Thursday that it planned to invest $14.3 billion in Scale AI, a start-up that works with data to train artificial intelligence systems, in a deal that Meta hopes will add needed muscle to its disappointing A.I. division. As a condition of the deal, Alexandr Wang, Scale AI’s 28-year-old chief executive, plans to join Meta in a top leadership role in the new division, which Meta is calling its Superintelligence lab. Mr. Wang, whom people inside Meta have taken to calling a visionary

Meta buys Scale AI in a $14.3B deal

Alexandr Wang, CEO of ScaleAI speaks on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 23, 2025. Scale AI founder Alexandr Wang told employees in a memo on Thursday that he's leaving for Meta, confirming reports from earlier in the week about his departure and a large investment from the social networking company. Meta is pumping $14.3 billion into Scale AI as part of the deal, and will have a 49% stake in the artificial intelligence startup, but will not have

Scale AI confirms ‘significant’ investment from Meta, says CEO Alexandr Wang is leaving

Data-labeling company Scale AI confirmed on Friday that it has received a “significant” investment from Meta that values the startup at $29 billion. The startup also said its co-founder and CEO Alexandr Wang is stepping down from his role to join Meta and help the bigger company with its AI work. Reports indicate that Meta invested about $14.3 billion for a 49% stake in the startup, which produces and labels data that’s used to train the large language models that underpin a significant portion

Scale AI's Alexandr Wang confirms departure for Meta as part of $14.3 billion deal

Alexandr Wang, CEO of ScaleAI speaks on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 23, 2025. Scale AI founder Alexandr Wang told employees in a memo on Thursday that he's leaving for Meta, confirming reports from earlier in the week about his departure and a large investment from the social networking company. Meta is pumping $14.3 billion into Scale AI as part of the deal, and will have a 49% stake in the artificial intelligence startup, but will not have

Scale AI confirms ‘significant’ investment from Meta, says CEO Alexanr Wang is leaving

Data-labeling company Scale AI confirmed on Friday that it has received a “significant” investment from Meta that values the startup at $29 billion. The startup also said its co-founder and CEO Alexandr Wang is stepping down from his role to join Meta and help the bigger company with its AI work. Reports indicate that Meta invested about $14.3 billion for a 49% stake in the startup, which produces and labels data that’s used to train the large language models that underpin a significant portion

Meta is paying $14 billion to catch up in the AI race

Meta is paying $14.3 billion to acquire 49 percent of Scale AI and hire its CEO, Alexandr Wang, to revamp its troubled AI efforts. As part of the deal, Wang will report directly to Meta CEO Mark Zuckerberg and remain on Scale’s board of directors, both companies announced on Thursday. Sources say Wang will lead a new AI lab at Meta tasked with building “superintelligence.” Meta spokesperson Ashley Zandy says the company “will share more about this effort and the great people joining this team i

Meta invests $14.8 billion in Scale AI to accelerate superintelligence ambitions

Editor's take: Big tech companies are locked in a fierce race to develop artificial intelligence that matches or exceeds human intelligence – a breakthrough with the power to transform industries and society. Meta's new partnership with Scale AI underscores just how urgent and high-stakes this competition has become, as the company commits to unprecedented investments to keep pace. Insider sources told The Information that Meta is making a bold move to reshape its artificial intelligence ambiti

Meta forming new AI lab helmed by Scale AI CEO Alex Wang, report says

Alexandr Wang, CEO of Scale AI, arrives for a meeting with international investors in IA at the Elysee Palace as part of the Artificial Intelligence (AI) Action Summit in Paris, France, Feb. 10, 2025. Meta is forming a new artificial intelligence research lab and bringing on Alexandr Wang, founder and CEO of the startup Scale AI, according to The New York Times. The research lab is going to pursue a concept known as "superintelligence," which is an AI system that surpasses human intelligence,

Can Scale AI and Alexandr Wang reignite Meta’s AI efforts?

Meta is reportedly investing nearly $15 billion in the data-labeling firm Scale AI and taking a 49% stake in the startup, while also bringing on CEO Alexandr Wang to help lead a new “superintelligence” lab within the company. The deal is reminiscent of Meta’s previous large and risky bets, such as its $19 billion acquisition of WhatsApp and its $1 billion Instagram purchase. At the time those mergers closed, many people suggested Meta had grossly overpaid for the platforms — and today’s discour

Topics: ai data labs meta scale