x.com/jakemor/status/2102605571132162106
1 correction found
spends $20b to KO scaleai as a data supplier
Meta did not spend $20 billion on Scale AI. The transaction was about $14.35 billion for a minority stake, and Scale said it remained independent and continued serving other customers.
Full reasoning
This overstates both the size and the effect of the Meta–Scale deal.
- On June 12, 2025, Wilson Sonsini, counsel on the transaction, described it as a $14.35 billion investment from Meta in Scale AI, not $20 billion. The same writeup says Meta would hold only a minority of Scale's outstanding equity.
- Scale itself said after the deal that it "remains an independent company" and is "not integrating our business operations with Meta." Scale also said Meta would not get access to Scale's internal systems or other customers' confidential information.
- Scale later reported that, despite media reporting following the Meta deal, its data business performed best in the second half of 2025 and is now profitable.
So the claim is inaccurate in two concrete ways: the amount was roughly $14.35B, not $20B, and available evidence does not show Scale was "KO[ed]" as a supplier; Scale publicly said it stayed independent and continued operating and growing after the Meta investment.
3 sources
- Insights | Wilson Sonsini
On June 12, 2025, Scale AI, Inc. ... announced a $14.35 billion investment from Meta Platforms, Inc. that values Scale at over $29 billion. ... Following its investment, Meta will hold a minority of Scale's outstanding equity.
- Scale Remains Independent After Meta Investment | Scale AI
Let us be clear: Scale remains an independent company. Unlike other recent deals in the AI space, Scale is not integrating our business operations with Meta. Scale will not provide Meta with access to Scale internal systems or to our customers' confidential information.
- Scale CEO Jason Droege reflects on 2025 growth and outlines how Scale is building reliable, production-ready AI for 2026. | Scale AI
Despite media reporting following the Meta deal, the business performed best in the second half of the year and is now profitable.