Zuckerberg bets $14B on Scale AI to save Meta’s struggling AI ambitions, hires founder Wang

Mark Zuckerberg is done waiting. Frustrated by Meta’s sluggish AI progress, he’s making a $14 billion bet on Scale AI—and bringing in its founder, Alexandr Wang, to help steer the company back on course.

According to a report from CNBC, which cites people familiar with the discussions, Meta is close to finalizing a deal that would give it a 49% stake in the data-labeling startup. The agreement also includes bringing on Wang to help the company sharpen its AI strategy.

The move follows reports from Bloomberg just two days ago that Meta was “in talks to make a multibillion-dollar investment into artificial intelligence startup Scale AI.” Bloomberg added that the investment could top $10 billion, and The Information pegged it closer to $15 billion. The deal won’t be a full acquisition, but it’s a clear signal that Zuckerberg sees Scale AI—and Wang—as central to Meta’s next chapter in AI.

Founded in 2016 by CEO Alexandr Wang and Lucy Guo, Scale AI has established its reputation as a pivotal player in the AI landscape, with a focus on the critical aspect of providing training data for AI applications. Wang’s entrepreneurial journey, which began at the age of 19 while he was a student at MIT, has propelled him to the ranks of the youngest self-made billionaires globally.

Scale AI Founder and CEO: Alexandr Wang

Wang, who dropped out of MIT to launch Scale AI in 2016, has built one of the most influential startups in the AI space. Scale works with tech giants like OpenAI, Google, and Microsoft to prep the massive datasets used to train modern AI models. Meta is already one of its biggest customers. Now, with Wang stepping in to lead a new AI lab at Meta, the relationship is getting a lot deeper.

The new lab isn’t just a showpiece. Sources told CNBC that Wang will bring some of his team with him, and the expectation is that he’ll help Meta build better models—and build them faster. After the lukewarm reception of Meta’s Llama 4 models earlier this year, Zuckerberg is looking for someone with both technical chops and a track record of execution.

“As a founder of one of the most prominent AI startups, Wang has built a reputation as an ambitious leader who both understands AI’s technical complexities and how to build a business that’s not merely focused on research, according to two former Meta AI employees who agreed to speak on the condition of anonymity. Zuckerberg will be counting on Wang to better execute Meta’s AI ambitions following the lukewarm launch of the company’s latest Llama AI models,” CNBC reported

This isn’t a traditional acquihire, but the goal feels familiar: get the talent, not just the tech. Meta’s legal team is also watching its steps here, amid an ongoing antitrust trial with the FTC, a full acquisition might have drawn even more scrutiny.

Wang’s credentials line up with what Zuckerberg wants. Internally, people describe him as a “wartime CEO,” someone who thrives under pressure and isn’t afraid to move fast. And Wang sees AI through a geopolitical lens. In a January interview with CNBC, he said he believes there’s an “AI war” between the U.S. and China, and that America needs more infrastructure to stay competitive.

“The United States is going to need a huge amount of computational capacity, a huge amount of infrastructure,” he said. “We need to unleash U.S. energy to enable this AI boom.”

That mindset resonates with Zuckerberg, who’s grown increasingly worried that Meta is falling behind rivals like OpenAI. Internally, the shift is already happening. Meta has been moving away from its long-standing AI research unit, FAIR, and giving more weight to its product-focused GenAI team. But that team stumbled this spring when Meta released two smaller versions of Llama 4 instead of the expected high-powered “Behemoth” model. Developers weren’t impressed, and that frustration has reportedly reached the top.

In the aftermath, Meta reshuffled leadership. The GenAI team was split in two. Connor Hayes now leads AI Products, while AGI Foundations is co-led by Amir Frenkel and Ahmad Al-Dahle, the previous head of GenAI. Some insiders saw Al-Dahle’s demotion as a sign that Zuckerberg had lost confidence.

Wang’s arrival changes the equation. He brings fresh perspective and insight into how top competitors are building their models—and where Meta has fallen short. As Vahan Petrosyan, CEO of rival startup SuperAnnotate, put it: “I would say Scale has covered probably 70% of all the models that are built.” For Meta, that means access to what Petrosyan calls “collective intelligence on how to build a better ChatGPT.”

“When Meta is buying them, they’re buying their intelligence,” he said.

Whether or not Wang’s presence is enough to fix Meta’s AI troubles remains to be seen. But Zuckerberg’s message is clear: if the current team can’t deliver, he’s ready to bring in someone who can.