Meta has hired Scale’s 28-year-old CEO, Alexandr Wang to lead a new division after acquiring a 49% stake in Scale AI for $14.3 billion, valuing the San Francisco-based data-labeling startup at $29 billion.
Meta confirmed that Wang will now lead its newly established “superintelligence” division, a strategic move expected to bolster the company’s efforts in developing advanced AI systems. In a statement, the social media giant said, “We will deepen the work we do together producing data for AI models, and Alexandr Wang will join Meta to work on our superintelligence efforts.”
Wang, who co-founded Scale after dropping out of MIT, has become one of Silicon Valley’s most high-profile entrepreneurs. Under his leadership, Scale grew into a leading provider of labeled data for AI training, counting government agencies and top tech firms among its clients. His appointment signals a shift in Meta’s approach, favoring practical, business-oriented AI leadership over purely research-driven models.
While Meta has previously been seen as a leader in open-source AI, internal staff losses and delayed model releases have raised concerns about its competitiveness against Google, OpenAI, and Chinese rival DeepSeek. Industry observers say Meta CEO Mark Zuckerberg is betting on Wang’s business acumen to help turn things around.
The acquisition has not gone unnoticed by Scale’s existing clients. Concerns are already being raised about potential conflicts of interest, especially as Wang will retain a seat on Scale’s board. Some of Scale’s partners—including Meta’s AI rivals—may reconsider their engagements with the startup.
In the interim, Scale’s chief strategy officer, Jason Droege, will take over as CEO. A handful of employees from Scale will also move with Wang to Meta, though the company says it will remain operationally independent. Meta, notably, will not be taking a seat on Scale’s board.
Founded in 2016, Scale uses platforms like Remotasks and Outlier to source gig workers for manual data labeling, a foundational element in building large language models such as OpenAI’s ChatGPT. The company’s valuation has more than doubled since its last funding round in May 2024, which included investments from Nvidia, Amazon, and Meta.
While it is yet unclear whether the deal will face regulatory scrutiny, it marks Meta’s second-largest financial move after its $19 billion acquisition of WhatsApp in 2014. The U.S. Federal Trade Commission is currently involved in ongoing lawsuits against Meta, accusing it of monopolistic acquisitions.
For Meta, this is a bold gamble to regain footing in the AI race. For Wang, it’s another step in a meteoric rise—from MIT dropout to leading one of the most ambitious AI initiatives in the world.
