Meta Invests $14.3B in Scale AI for 'Superintelligence' Amid Industry Competition

June 13, 2025
Meta Invests $14.3B in Scale AI for 'Superintelligence' Amid Industry Competition
  • To support its operations, Scale recruits gig-workers through platforms like Remotasks and Outlier for manual data labeling.

  • This investment reflects the increasing urgency for advancements in artificial general intelligence (AGI) across the tech industry, highlighting the critical role of data infrastructure.

  • Meta's move comes in response to rising competition from cost-effective rivals like DeepSeek, which threaten its market position.

  • However, analysts express mixed feelings about Meta's aggressive investment strategy, citing potential internal challenges such as high employee turnover and lackluster product launches.

  • These internal challenges have previously hindered Meta's AI progress, which was overseen by Turing Award winner Yann LeCun.

  • Year-to-date, Meta's stock has gained 18%, reflecting positive market sentiment following discussions on AI investments.

  • However, GuruFocus estimates the GF Value for Meta at $537.38, indicating a potential downside of 22.5% from its current stock price.

  • Meta has announced a substantial $14.3 billion investment in AI company Scale, aiming to develop 'superintelligence' under the leadership of CEO Alexandr Wang.

  • Scale AI will continue to operate independently, providing Meta with essential data labeling, curation, and model evaluation services, which are crucial for AI training.

  • To bolster its efforts, Meta is establishing a new lab consisting of 50 researchers focused on developing advanced methods for artificial superintelligence (ASI), offering competitive salaries to attract top talent.

  • Investors are advised to consider these developments alongside current market conditions and future expectations regarding Meta's growth trajectory.

  • Despite facing challenges, Meta has achieved a total return of 311.82% over the past three years, significantly outperforming the US Interactive Media and Services industry.

Summary based on 60 sources


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