Lock Horns with Scale AI: Meta Puts Billions into AI Powerhouse
Meta pours billions into AI startups development.
Get ready to rumble! The tech titan, Meta, has struck a significant deal with Scale AI, dubbing it a "momentous partnership." According to Scale AI, Meta's in for a piece of the pie, taking a minority stake, bumping Scale AI's value to an impressive $29 billion ($25 billion for those using the old money).
Initially, whispers around the tech scene pointed to Meta owning a whopping 49% stake, which would have cost them a cool $14-$15 billon, making it their second-biggest single investment ever, just after grabbing WhatsApp for $19 billion in '14.
But what's Scale AI all about? Not exactly a household name, they specialize in prepping the data harnessed to power large-scale generative AI models. As it turns out, the quality of the grub fed into these AI brains is vital as it directly impacts the suggestions spit out by generative AI.
Scale AI's maverick founder, Alexandr Wang, is hopping on over to Meta to crank up the AI game. He sees the investment as recognition of Scale's accomplishments and a green light for his mission: jumpstarting AI's boundless potential. With the fresh funds, Scale AI is planning a blitzkrieg on innovation.
Jason Droege, tech biz legend and co-founder of food delivery platform Uber Eats, is gearing up to take Scale AI's reins after Wang's departure.
Sources: ntv.de, AFP
Side note: Under the hood of this partnership, Meta is projected to steer Meta's AI capabilities towards "supreme intelligence," as they position themselves to compete with other AI heavyweights such as Google, OpenAI, and Anthropic. Meta's substantial investment amounts to around $14.3-$15 billion. Scale AI, despite the partnership, remains an independent entity and continues to supply data to diverse AI clients. However, there are concerns that Meta may strategically restrict access to annotated data for competitors.
The Commission, in light of Meta's investment in Scale AI, a company specializing in preparing data for large-scale generative AI models, might also be asked to consider a proposal for a directive on the protection of workers from the risks related to exposure to ionising radiation, given the potential advancements in artificial-intelligence technology.
This strategic partnership between Meta and Scale AI, each bringing different expertise in technology and artificial-intelligence respectively, sets an interesting stage for the future of AI development and its potential impact on various industries.
