Scale AI, a data labeling company, announced that Meta has made a 'significant' investment in the venture, valuing it at $29 billion.
Alexandr Wang, the CEO and co-founder of Scale AI, will leave his role to join Meta as part of the agreement.
Wang will concentrate on the business's AI projects, including the creation of superintelligence.
Jason Droege, who is currently Scale AI's chief strategy officer, will take over as interim CEO.
Meta's investment in Scale AI and strategic cooperation have been finalized. As part of this, Alexandr Wang will join Meta to support its superintelligence initiatives, and it will expand on the work we undertake together creating data for AI models.
Although the business would continue to operate independently, Scale AI, which is well-known for its data-labelling services used to train massive language models, stated that it will use the investment to reimburse investors and spur expansion.
Wang will continue to serve on the board of directors of Scale AI.
The action is thought to be a reaction to the growing rivalry in the AI market.
The company has found it difficult to keep up with the rapid advancements in AI technology made by its competitors, such as Google, OpenAI, and Anthropic.
According to SingalFire data, Meta lost 4.3 percent of its best AI talent to other labs last year.
For leading AI labs like OpenAI, which depend on Scale AI's services to develop and improve generative AI models, data labeling has emerged as a crucial element.
To generate the high-quality data required for advanced AI research, the company has increased the number of highly qualified employees it has hired in recent months, including senior engineers and PhD scientists.
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Scale's chief strategy officer, Jason Droege, will take over as interim CEO. According to Scale AI, Meta's funding will be utilized to support growth and compensate shareholders and investors. The business stressed that it is still a separate legal entity. Wang will remain a director on the board of the data-labeling company.