Meta is reportedly in discussions to invest more than $10 billion in scale AI in Scale AI, a San Francisco-based data infrastructure startup. According to Bloomberg.
Conditions have not been fixed and could still change, sources told the outlet. Both companies have been quiet so far, and the AI refused to say anything as Meta did not respond to requests for comment.
“Meta Platforms Inc. is in discussions to make a multi-billion dollar investment in artificial intelligence startup scale AI, according to people familiar with the issue,” reported Bloomberg.
“The value of the fundraising could exceed $10 billion, some people said.
A trade of this size marks one of the biggest AI-related bets in the meta to date, highlighting how much Big Tech spends on getting ahead of the race for better training data and smarter models.
Last year, a $13.8 billion unicorn covered AI when the $13.8 billion unicorn was hit by a lawsuit accusing widespread wage theft and misclassification of workers. The lawsuit, filed by the prime contractor, raised questions about how Scale handles the workforce despite high-profile supporters and headline grabs ratings.
Founded in 2016 by CEOs Alexandr Wang and Lucy Guo, Scale AI has cemented its reputation as a vital player in the AI landscape, focusing on key aspects of AI applications’ training data delivery. The Wang entrepreneur’s journey, which began at the age of 19, a student at MIT, promoted him to the world’s youngest, homemade billionaires rank.
Since its founding eight years ago, Scale AI has grown to over 900 employees, surpassing the unicorn milestone and raising more than $1.35 billion in funding to date. The company’s contractors are involved in projects ranging from generative AI training to markup images of self-driving car companies such as Cruises and Waymo, ensuring that the vehicles have a better understanding of the environment.
Headquartered in San Francisco, Scale AI focuses on data labeling. This is an unattractive but important part of training large-scale AI models. The startup has already attracted heavyweight supporters like Nvidia, Amazon and Meta itself, and was last valued at nearly $14 billion.
Beyond labeling, Scale AI also runs a platform that allows researchers to share AI-related content. The company says its contributor base spans 9,000 cities and towns.
Its flagship product, the scale generation AI data engine, allows customers to define data requirements through a user-friendly interface. The combination of human expertise and automated quality assurance mechanisms ensures the delivery of high-quality data sets.
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