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Meta Invests in Scale AI with Unusual Deal,Valuing Startup at $29 Billion
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By Anya Sharma | SAN FRANCISCO – 2025/06/17 12:53:19
Meta’s move to acquire a 49% stake in AI startup Scale is raising eyebrows,with the deal valuing Scale at over $29 billion. The agreement involves distributing proceeds to shareholders and vested equity holders, providing them with “ample liquidity” while allowing them to remain shareholders.
Scale officially announced the deal, highlighting that it provides significant returns for investors and employees alike.Meta is also reportedly hiring Scale’s founder CEO, Alexandr Wang, who famously dropped out of MIT at age 19 to establish the company, known for its human-verified AI training data.
Instead of purchasing shares from existing shareholders,Meta is facilitating dividend payouts,according to Bloomberg. Such as, Accel, an early investor in Scale, is expected to receive $2.5 billion. accel declined to comment.
Unusual Structure Raises Questions
With numerous backers, including Amazon and Meta, scale was previously valued at $14 billion after a $1 billion Series F funding round last year. The substantial dividend payout resembles an acquisition, leaving observers to wonder if regulators will scrutinize the arrangement.
“distribute” proceeds to shareholders and vested equity holders (aka employees) granting them with “substantial liquidity”
Understanding AI Training Data and Company Valuation
Frequently Asked Questions
- What is Scale AI?
- Scale AI is an AI startup that provides AI training data verified by humans.
- Why is Meta investing in Scale AI?
- Meta’s investment provides them access to high-quality AI training data and the expertise of Scale AI’s founder, Alexandr Wang.
- What makes this deal unusual?
- The structure of the deal, involving a partial acquisition and dividend payouts, is not typical for such investments.
- What was Scale AI’s previous valuation?
- Prior to Meta’s investment, Scale AI was valued at $14 billion.
- Who is Alexandr Wang?
- Alexandr Wang is the founder and CEO of Scale AI,who famously dropped out of MIT at age 19 to start the company.
