Ai, Meta invests $14.3bn to take over 49% of Scale
Start-up CEO Alexandr Wang joins the social giant's Ai development team
2' min read
2' min read
Meta is investing USD 14.3 billion in the artificial intelligence company Scale by hiring its CEO Alexandr Wang within its own Ai development team.
The announced deal reflects the drive of Meta's CEO, Mark Zuckerberg, to revive artificial intelligence efforts at the parent company of Facebook and Instagram, which faces stiff competition from rivals such as Google and OpenAI.
Meta announced what it called a 'strategic partnership and investment' with Scale late Thursday evening, 12 June. Scale said the $14.3 billion investment brings its market value to over $29 billion.
Scale emphasised, however, that it will remain an independent company, but the agreement will 'substantially expand the business relationship between Scale and Meta'. The latter will hold a 49 per cent stake in the start-up.
Wang, while joining Meta along with a small group of other Scale employees, will remain on Scale's board of directors. In his place is Scale's new interim ceo Jason Droege, who previously served as the company's chief strategy officer and also held management roles at Uber Eats and Axon.
