Landmark Deal: Meta Shifts AI Strategy
The potential deal would mark a strategic shift for Meta, which has traditionally focused on internal R&D. With rivals like Microsoft and Amazon investing billions in OpenAI and Anthropic, Meta appears determined to secure its place in the next wave of AI innovation—even as it lacks the vast cloud infrastructure of its competitors.
Why Scale AI?
Scale AI, last valued at $14 billion (and possibly heading to a $25 billion valuation in a new round), specializes in data preparation for AI training. The startup generated $870 million in revenue in 2024, with sales expected to double by the end of 2025. Scale AI is already a Meta partner, working together on military and defense applications, including the Defense Llama project—an adapted version of Meta’s Llama language model for the U.S. Department of Defense.
In addition, Meta has teamed up with Anduril to develop AR helmets powered by AI for defense uses, further deepening its footprint in military tech.
Strategic Context: Meta’s Big AI Bet
CEO Mark Zuckerberg has signaled plans to spend up to $65 billion on AI in 2025, with the Scale AI deal aligning with his vision of establishing Meta as a dominant force in the global AI ecosystem. Analysts see this move as a direct response to competitors’ rapid advances and a bid to close Meta’s infrastructure gap in cloud computing.
Scale’s collaboration with Meta and the Pentagon on advanced defense applications demonstrates Meta’s intent to play a key role in national security and military AI—areas where the competition is intensifying.