Annoyed at Meta's slow and unsatisfactory progress in training and developing synthetic intelligence (AI) models, CEO mark zuckerberg has decided to rope in talent from outside and spend billions of dollars to poach Scale AI CEO Alexander Wang.
According to CNBC, the parent company of facebook is in the final stages of talks to seal a deal to invest $14 billion into Scale AI. Wang has not only established the most formidable AI startup, but he has also built a reputation as a leader who understands AI's technical complexities. He is also known as someone who knows how to build a business.
Why will mark zuckerberg not purchase Scale AI?
Taking cues from other giants like google and microsoft, who have roped in outside talent to develop AI, mark zuckerberg decided not to acquire Scale AI. Instead, he has decided to buy a significant stake in the AI startup. Meta has taken this decision at a time when it is facing the Federal Trade Commission trial for antitrust claims. He does not want to worsen the case by sending signals that he is acquiring Scale AI.
Meta's stake in Scale AI?
According to 'The New York Times,' Meta will take a 49% stake in the data-labeling startup, and Wang will help lead a new AI research lab at the social networking company. He will be joined by some of his colleagues. Wang and Scale AI made their reputation by helping leading tech companies like openai, google, and microsoft in preparing data they use to train AI models. Scale AI has helped Meta before as well.
What is the cost of Scale AI?
Founded in 2016, Scale AI is valued at $14 billion and ranked 28 on CNBC's Disruptor 50 list. It quickly made its presence felt and hit the headlines in 2024 when it signed one of the largest recent commercial leases in San Francisco. It bought 180,000 square feet of space in a downtown building that had been occupied by Airbnb. It announced a multi-million-dollar deal with the U.S. Department of Defense in march this year after collaborating with Meta on Defense Llama. It is a custom version of Meta's open-source Llama foundation model designed to "support American national security missions."
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