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Meta invests $14.3B in AI firm Scale and recruits its CEO for 'superintelligence' team

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Meta invests $14.3B in AI firm Scale and recruits its CEO for 'superintelligence' team
News

News

Meta invests $14.3B in AI firm Scale and recruits its CEO for 'superintelligence' team

2025-06-13 10:26 Last Updated At:10:31

Meta is making a $14.3 billion investment in artificial intelligence company Scale and recruiting its CEO Alexandr Wang to join a team developing “superintelligence” at the tech giant.

The deal announced Thursday reflects a push by Meta CEO Mark Zuckerberg to revive AI efforts at the parent company of Facebook and Instagram as it faces tough competition from rivals such as Google and OpenAI.

Meta announced what it called a “strategic partnership and investment” with Scale late Thursday. Scale said the $14.3 billion investment puts its market value at over $29 billion.

Scale said it will remain an independent company but the agreement will “substantially expand Scale and Meta’s commercial relationship.” Meta will hold a 49% stake in the startup.

Wang, though leaving for Meta with a small group of other Scale employees, will remain on Scale’s board of directors. Replacing him is a new interim Scale CEO Jason Droege, who was previously the company’s chief strategy officer and had past executive roles at Uber Eats and Axon.

Zuckerberg's increasing focus on the abstract idea of “superintelligence” — which rival companies call artificial general intelligence, or AGI — is the latest pivot for a tech leader who in 2021 went all-in on the idea of the metaverse, changing the company's name and investing billions into advancing virtual reality and related technology.

It won't be the first time since ChatGPT's 2022 debut sparked an AI arms race that a big tech company has gobbled up talent and products at innovative AI startups without formally acquiring them. Microsoft hired key staff from startup Inflection AI, including co-founder and CEO Mustafa Suleyman, who now runs Microsoft's AI division.

Google pulled in the leaders of AI chatbot company Character.AI, while Amazon made a deal with San Francisco-based Adept that sent its CEO and key employees to the e-commerce giant. Amazon also got a license to Adept’s AI systems and datasets.

Wang was a 19-year-old student at the Massachusetts Institute of Technology when he and co-founder Lucy Guo started Scale in 2016.

They won influential backing that summer from the startup incubator Y Combinator, which was led at the time by Sam Altman, now the CEO of OpenAI. Wang dropped out of MIT, following a trajectory similar to that of Zuckerberg, who quit Harvard University to start Facebook more than a decade earlier.

Scale's pitch was to supply the human labor needed to improve AI systems, hiring workers to draw boxes around a pedestrian or a dog in a street photo so that self-driving cars could better predict what's in front of them. General Motors and Toyota have been among Scale's customers.

What Scale offered to AI developers was a more tailored version of Amazon's Mechanical Turk, which had long been a go-to service for matching freelance workers with temporary online jobs.

More recently, the growing commercialization of AI large language models — the technology behind OpenAI's ChatGPT, Google's Gemini and Meta's Llama — brought a new market for Scale's annotation teams. The company claims to service “every leading large language model,” including from Anthropic, OpenAI, Meta and Microsoft, by helping to fine tune their training data and test their performance. It's not clear what the Meta deal will mean for Scale's other customers.

Wang has also sought to build close relationships with the U.S. government, winning military contracts to supply AI tools to the Pentagon and attending President Donald Trump's inauguration. The head of Trump's science and technology office, Michael Kratsios, was an executive at Scale for the four years between Trump's first and second terms. Meta has also begun providing AI services to the federal government.

Meta has taken a different approach to AI than many of its rivals, releasing its flagship Llama system for free as an open-source product that enables people to use and modify some of its key components. Meta says more than a billion people use its AI products each month, but it's also widely seen as lagging behind competitors such as OpenAI and Google in encouraging consumer use of large language models, also known as LLMs.

It hasn't yet released its purportedly most advanced model, Llama 4 Behemoth, despite previewing it in April as "one of the smartest LLMs in the world and our most powerful yet.”

Meta's chief AI scientist Yann LeCun, who in 2019 was a winner of computer science's top prize for his pioneering AI work, has expressed skepticism about the tech industry's current focus on large language models.

“How do we build AI systems that understand the physical world, that have persistent memory, that can reason and can plan?” LeCun asked at a French tech conference last year.

These are all characteristics of intelligent behavior that large language models “basically cannot do, or they can only do them in a very superficial, approximate way,” LeCun said.

Instead, he emphasized Meta's interest in “tracing a path towards human-level AI systems, or perhaps even superhuman.” When he returned to France's annual VivaTech conference again on Wednesday, LeCun dodged a question about the pending Scale deal but said his AI research team's plan has “always been to reach human intelligence and go beyond it.”

“It’s just that now we have a clearer vision for how to accomplish this,” he said.

LeCun co-founded Meta's AI research division more than a decade ago with Rob Fergus, a fellow professor at New York University. Fergus later left for Google but returned to Meta last month after a 5-year absence to run the research lab, replacing longtime director Joelle Pineau.

Fergus wrote on LinkedIn last month that Meta's commitment to long-term AI research “remains unwavering” and described the work as “building human-level experiences that transform the way we interact with technology.”

FILE - Scale AI founder and CEO Alexandr Wang poses for photos at the company's office in San Francisco, May 15, 2023. (AP Photo/Jeff Chiu, File)

FILE - Scale AI founder and CEO Alexandr Wang poses for photos at the company's office in San Francisco, May 15, 2023. (AP Photo/Jeff Chiu, File)

FILE - This combo image shows Meta's logo, top, at the company's headquarters in Menlo Park, Calif., Nov. 9, 2022 and The Constellation Energy building, Dec. 19, 2005 in a Baltimore. (AP Photo/Godofredo A. Vásquez, Gail Burton, File)

FILE - This combo image shows Meta's logo, top, at the company's headquarters in Menlo Park, Calif., Nov. 9, 2022 and The Constellation Energy building, Dec. 19, 2005 in a Baltimore. (AP Photo/Godofredo A. Vásquez, Gail Burton, File)

ALBANY, N.Y. (AP) — New York is set to become the latest state to legalize medically assisted suicide for the terminally ill under a deal reached between the governor and state legislative leaders announced Wednesday.

In an op-ed in the Albany Times Union, Gov. Kathy Hochul announced she will sign the proposal after she made an agreement with lawmakers to include a series of “guardrails” in the measure.

Hochul, a Catholic, said she came to the decision after hearing from New Yorkers in the “throes of pain and suffering,” as well as their children, while also considering opposition from “individuals of many faiths who believe that deliberately shortening one’s life violates the sanctity of life.”

“I was taught that God is merciful and compassionate, and so must we be,” she wrote. “This includes permitting a merciful option to those facing the unimaginable and searching for comfort in their final months in this life.”

A dozen other states and the District of Columbia have laws to allow medically assisted suicide, according to advocates, including a law in Illinois signed last week that goes into effect next year.

New York’s Medical Aid in Dying Act requires that a terminally ill person who is expected to die within six month make a written request for life-ending drugs. Two witnesses would have to sign the request to ensure that the patient is not being coerced. The request would then have to be approved by the person’s attending physician as well as a consulting physician.

The governor said the bill's sponsors and legislative leaders have agreed to add provisions to require confirmation from a medical doctor that the person “truly had less than six months to live,” along with confirmation from a psychologist or psychiatrist that the patient is capable of making the decision and is not under duress.

Hochul also said the bill will include a mandatory five-day waiting period as well as a written and recorded oral request to “confirm free will is present.” Outpatient facilities associated with religious hospitals may elect not to offer the option.

She added that she wants the bill to apply only to New York residents. Earlier this month, a federal appeals court ruled that a similar law in New Jersey applies only to residents of that state and not those from beyond its borders.

Hochul said she will sign the bill into law next year, with her changes weaved into the proposal. It will go into effect six months after it is signed.

The legislation was first introduced in 2016 but stalled for years amid opposition from New York State Catholic Conference and other groups. The Catholic organization argued the measure would devalue human life and undermine the physician’s role as a healer.

In a statement after the governor's announcement, Cardinal Timothy Dolan and the New York's bishops said Hochul's position “signals our government’s abandonment of its most vulnerable citizens, telling people who are sick or disabled that suicide in their case is not only acceptable, but is encouraged by our elected leaders.”

New York lawmakers approved the legislation during their regulation session earlier this year. Supporters said it would reduce suffering for terminally ill people and let them die on their own terms.

FILE - New York Gov. Kathy Hochul speaks during a House Committee on Oversight and Government Reform hearing, June 12, 2025, at the U.S. Capitol in Washington. (AP Photo/Julia Demaree Nikhinson, File)

FILE - New York Gov. Kathy Hochul speaks during a House Committee on Oversight and Government Reform hearing, June 12, 2025, at the U.S. Capitol in Washington. (AP Photo/Julia Demaree Nikhinson, File)

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