Meta secures a strategic stake in Scale AI and positions itself in the AI race

The technology giant Meta has recently completed the acquisition of a 49% stake in the data labeling-focused start-up Scale AI. According to an insider, the purchase price amounts to an impressive $14.3 billion. This significant decision values Scale AI at a total of $29 billion and stipulates that Alexandr Wang, the CEO of Scale AI, will lead a new unit within Meta in the future, specifically focusing on artificial general intelligence. This development injects new momentum into Silicon Valley's endeavor to be at the forefront of innovative technology trends. Meta, founded in 2004 by Mark Zuckerberg and fellow students at Harvard University, initially launched as "TheFacebook." After securing the domain Facebook.com in 2005, "The" was dropped from the name before the company rebranded to Meta Platforms in 2021. The move to collaborate with Scale AI comes at a time when Meta is under increased antitrust scrutiny due to past acquisitions of WhatsApp and Instagram. With the transaction, Meta secures access to high-quality data labeling, which is gaining increasing importance in the modern technology industry. This appears to be another shrewd move in Meta's historical sequence of strategic deals, ranging from the acquisition of the photo and video-sharing platform Instagram in 2012 to the purchase of Oculus VR in 2014.