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New details emerge on Meta’s $14.3B deal for Scale

  • Meta is set to acquire a 49% stake in AI startup Scale through a $14.3 billion deal.
  • The deal values Scale at over $29 billion, providing liquidity to shareholders and vested equity holders.
  • Meta will hire Scale's CEO Alexandr Wang, known for dropping out of MIT to start the company.
  • Contrary to initial assumptions, existing shareholders will receive dividends, not sell shares to Meta.
  • Accel, an early backer of Scale, is expected to receive a $2.5 billion payout.
  • Scale, with backers like Amazon and Meta, was last valued at $14 billion prior to the deal.
  • Regulatory approval will be needed for the significant payout in the deal.

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