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Report: Meta holding talks on $10B investment in data labeling startup Scale AI
- Meta Platforms Inc. is considering investing over $10 billion in data labeling startup Scale AI Inc., although terms are not finalized yet.
- Scale AI serves major companies like Meta, Microsoft, and OpenAI by providing subject-specific datasets for training large language models.
- Having recently been valued at $13.8 billion, Scale AI is a key player in the AI industry and has attracted significant investments.
- Meta's potential investment in Scale AI would mark its largest external AI investment and a shift towards more external research.
- Meta CEO Mark Zuckerberg is prioritizing AI development over building the metaverse, planning to spend up to $65 billion on AI investments this year.
- Scale AI, founded in 2016, expects revenue to exceed $2 billion by the end of this year due to the importance of its data labeling services for AI developers.
- Both Meta and Scale AI have attracted interest from the defense sector, with collaborations on developing AI tools for military use.
- Scale AI has faced controversy over allegations of low wages for overseas contractors, but denies the claims and recently had a labor investigation dropped.
- The company has evolved to hire better-paid contractors with advanced degrees to provide higher quality data for sophisticated AI systems.
- Around 12% of Scale AI's contractors hold a Ph.D., working on training datasets for legal and medical AI applications.
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