Meta Invests In Scale AI At $29 Billion Valuation, Taps CEO Alexandr Wang To Drive Internal AI Push As Part Of Deepening Partnership

Meta Platforms, Inc. META has made a strategic minority investment in Scale AI, valuing the company at over $29 billion, as part of a broader partnership to accelerate AI development.

What Happened: On Thursday, Scale AI confirmed the development. The deal includes a major leadership change: Scale's founder and CEO Alexandr Wang will join Meta to support its internal AI initiatives, while continuing to serve on Scale's board.

"Meta's investment recognizes Scale's accomplishments to date and reaffirms that our path forward – like that of AI – is limitless," Wang said in a statement.

Also Read: Meta Hits 1 Billion Monthly AI Users, Eyes Future With Subscriptions

The board has appointed Jason Droege, Scale's Chief Strategy Officer and a former Uber Eats executive, as interim CEO. "We have built the strongest foundation to tackle AI's data challenges," Droege said. "I'm dedicated to working with our talented team to continue realizing Alex's vision."

Why It's Important: Established in 2016, Scale AI has gained significant prominence in the tech industry by assisting major players such as OpenAI, Alphabet Inc.'s GOOG GOOGL Google and Microsoft Corporation MSFT in curating data essential for training advanced AI models.

Earlier this week, it was reported that Meta has finalized a $14 billion investment in Scale AI, securing a 49% stake in the artificial intelligence startup.

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Price Action: Meta shares dipped 0.11% on Thursday and fell an additional 0.21% in after-hours trading, according to Benzinga Pro.

Benzinga’s Edge Stock Rankings show META maintaining an upward trajectory over the short, medium and long term. Additional performance insights are available here.