Scale AI CEO Alexandr Wang Leaves to Join Meta Following $14.3B Deal
As Meta intensifies its A.I. race against Big Tech rivals, it’s recruiting Alexandr Wang, founder and CEO of Scale AI, to strengthen its efforts. Wang, 28, announced yesterday (June 12) that he will step down as CEO to join a newly formed A.I. team within Meta. The announcement came after Meta acquired 49 percent of Scale AI in a deal that valued the startup at $29 billion, which Wang confirmed in a memo to employees.
“As you’ve probably gathered from recent news, opportunities of this magnitude often come at a cost. In this instance, that cost is my departure,” he wrote, while thanking his team for accelerating “the development of what may be the most important technology in human history.”
Wang will remain involved with Scale AI as a board member and is expected to bring several employees with him to Meta. He has led the company since co-founding it in 2016 to supply high-quality labeled data—sourced through human contractors—for training A.I. systems.
Meta’s investment in Scale AI will reportedly total $14.3 billion, making it the Meta’s second largest acquisition after its $19 billion purchase of WhatsApp in 2014. The deal will give Meta a 49 percent non-voting stake in the startup.
“Meta has finalized our strategic partnership and investment in Scale AI,” the company said in a statement to Observer. “As part of this, we will deepen the work we do together for A.I. models, and Alexandr Wang will join Meta to work on our superintelligence efforts.”
Superintelligence refers to a form of A.I. that surpasses human intelligence and even goes beyond artificial general intelligence (A.G.I.), a benchmark that has yet to be reached. Wang’s new role at Meta will place him at the center of a roughly 50-person team focused on achieving that breakthrough.
Meta’s partnership with Scale AI mirrors strategies pursued by its competitors, including Microsoft’s $13 billion alliance with OpenAI and the investments Amazon and Google have made in Anthropic. Meta, under Mark Zuckerberg’s leadership, is prepared to spend up to $72 billion on A.I. development this year, with funding allocated to infrastructure, chip procurement and other core initiatives.
Although Wang now finds himself at the forefront of Meta’s A.I. ambitions, he admitted he was initially uncertain about the move. “When this opportunity first presented itself, my immediate reaction was uncertainty,” he told employees. “But as I spent time truly considering it, I realized this was a deeply unique moment, not just for me, but for Scale as well.” Wang added that proceeds from Meta’s investment will be distributed to Scale AI’s shareholders and vested equity holders.
Jason Droege, Scale AI’s current chief strategy officer and a former executive at Uber and Axon, will serve as interim CEO following Wang’s departure. “Meta’s new investment and our expanded commercial agreement are a testament to the incredible work and dedication of the entire Scale team—and to the tremendous potential that lies ahead,” Droege said in a statement.