Meta Explores AI Acquisitions and Expands Portfolio with $14.3 Billion Investment in Scale AI
Facebook-parent Meta has been actively pursuing expansion in the artificial intelligence (AI) sector. According to reports, Meta was in discussions to acquire AI video startup Runway, known for its AI-powered video generation tools, before ultimately deciding to invest $14.3 billion in data-labelling startup Scale AI. The negotiations with Runway were reportedly dropped as Meta shifted its focus to other AI initiatives.
Strategic Shift: Meta Invests in Scale AI and Forms Superintelligence Unit
In addition to the failed acquisition of Runway, Meta's $14.3 billion deal with Scale AI involved taking a 49% stake in the company. As part of the deal, Alexandr Wang, Scale’s co-founder and CEO, will join Meta to lead its newly established superintelligence unit. This strategic move marks a significant pivot in Meta’s AI strategy as the company intensifies its efforts to strengthen its AI portfolio.
Also Read: Gartner Predicts 40% of Agentic AI Projects Will Be Scrapped by 2027
Meta's Broader AI Strategy: Interest in Various Startups and Defense Partnerships
Meta’s push into AI has not been limited to Scale AI and Runway. The company has also approached other AI startups, including Safe Superintelligence and Perplexity AI. While Meta was unable to acquire Safe Superintelligence, it successfully hired its CEO, Daniel Gross, along with former GitHub CEO Nat Friedman, to join its AI team. Furthermore, Meta has partnered with Anduril Industries to develop augmented reality devices for the U.S. Army, submitting a joint bid for contracts under a $22 billion military modernization program, which further underscores its commitment to advancing AI in defense technology.
