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[Meta European headquarters] Derick Hudson If Meta Platforms (NASDAQ:META [https://seekingalpha.com/symbol/META]) goes ahead [https://seekingalpha.com/news/4456382-meta-is-said-to-weigh-multibillion-dollar-investment-in-ai-startup-scale-ai] with an investment into Scale AI, it could boost its exposure to artificial intelligence, and provide a “positive catalyst” for the Mark Zuckerberg-led company, Seeking Alpha analysts said. “This investment in Scale AI might accelerate META’s AI applications roll up and their monetization,” Seeking Alpha analyst Geneva Investor [https://seekingalpha.com/author/geneva-investor] said via email. “Synergies might come from better data labeling to improve META’s own models, or in defense and military applications (the two companies already collaborate on Defense Llama). I am excited to see what’s next.” Jonathan Weber [https://seekingalpha.com/author/jonathan-weber], Investing Group Leader for Cash Flow Club, agreed, and said the rumored $10B investment could be easily digestible for a company with Meta's cash flows. “Management has proven to be very competent in identifying quality targets in the past, including via its Instagram acquisition, thus I don’t think that the risk of overpaying is overly high,” Weber said via email.
If the investment (reported to be around $10B in size) actually comes to fruition, it would rank among Meta's largest financings ever. In 2014, Meta (then known as Facebook) acquired WhatsApp for $14B. It paid approximately $1B in cash and stock for Instagram in 2012 and approximately $2B for Oculus VR in 2014. Scale AI, founded in 2016 by Alexandr Wang, provides data-labeling services used to train machine learning systems. The company’s technology underpins efforts by clients such as Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]) and OpenAI, and it has emerged as a central player in the generative AI surge.
Its most recent funding round in 2024 pegged its valuation at approximately $14B, with investors including Meta and Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]). Earlier this year, reports suggested the company was pursuing a tender offer that could value it as high as $25B. _Seeking Alpha's Rob Williams contributed to this story._ MORE ON META PLATFORMS * Beyond The Screen: How Meta's Glasses Will Reshape Our Lives [https://seekingalpha.com/article/4793111-beyond-the-screen-how-meta-glasses-will-reshape-our-lives] * Meta: Reality Labs Could Take Off Sooner Than Later [https://seekingalpha.com/article/4793193-meta-reality-labs-could-take-off-sooner-than-later] * Meta's Strategic Nuclear Leap Bolsters The Bull Case [https://seekingalpha.com/article/4792439-meta-strategic-nuclear-leap-bolsters-the-bull-case] * Meta is said to weigh multibillion-dollar investment in AI startup Scale AI [https://seekingalpha.com/news/4456382-meta-is-said-to-weigh-multibillion-dollar-investment-in-ai-startup-scale-ai] * Alphabet CEO Pichai eyes engineering talent amid AI advances - report [https://seekingalpha.com/news/4455725-alphabet-ceo-pichai-eyes-engineering-talent-amid-ai-advances]
Meta investing in Scale AI could boost AI exposure, provide 'positive catalyst:' SA analysts
June 09, 2025 03:19 PM EDT | By EODHD
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