Zuckerberg kills two birds with one stone: Meta's investment in Scale strengthens its AI and neutralizes Google.

The high concentration of businesses in the US technology sector means that the backbone of AI development ultimately depends on a handful of firms, which are precisely the most powerful in Silicon Valley . These brands deploy their strategies, expanding and retreating on the AI ​​game board, emulating the feudal lords who fought to dominate a specific kingdom or territory. Thus, Meta recently made a significant investment in Scale AI, an AI startup, with the aim of strengthening its presence in this field. However, this move has caused other major technology companies to consider cutting ties with Scale AI.

Google, Scale AI’s largest client, is planning to break ties with the firm after Meta decided to acquire a 49% stake in it for over $14 billion , an amount that raises the startup’s valuation to $29 billion. The move by Zuckerberg’s firm includes the departure of Alexander Wang, co-founder and CEO of Scale AI, from his own brand to begin working directly under the orders of the parent company of Facebook and Instagram. Google, which invested $150 million in Scale AI last year , does not seem willing to allocate resources to a company partially controlled by Meta.

Google's exit from Scale AI's client portfolio could pose a problem for the firm, whose revenue in 2024 amounted to $870 million. The Alphabet subsidiary's contribution is key, and its disengagement threatens to generate a domino effect , as it could push other brands to follow suit. In this sense, Microsoft and xAI, Elon Musk's AI company, are planning to discontinue their business with Scale AI . For its part, OpenAI chose to reduce its ties with the firm months ago. These companies' fear lies in the fact that Meta could access their most relevant data, since Scale AI's clients routinely share sensitive information about its roadmap and products.

WhatsApp's parent company has thus managed to make a significant impact on the AI ​​world. Its investment in Scale AI neutralizes a key driver for its rivals in this field , a move that confirms the acceleration of Zuckerberg's brand in the race for this key technology. The firm, which had lagged somewhat behind in the Artificial Intelligence race, has ambitious plans, such as creating a tool capable of automatically creating ads, thus revolutionizing the online advertising business. So much so that the firm is close to reaching all-time highs .

Scale AI's success lies in its approach to AI, in which, paradoxically, human agency plays a significant role. Thus, most of its revenue comes from charging AI model creators fees for access to a network of specialized workers who manage large data collections . This information is subsequently used to train AI models. The cost of these employees' services is high: a single "annotation" from these operators, who include historians and scientists, can reach $100.

The potential for Scale AI is strong: automotive companies such as Oshkosh and Valeo have contracted its services to develop their automation tools, including the development of autonomous driving . However, the bulk of its business comes from contracts with companies that operate with generative AI models. Therefore, Meta's commitment to this brand could mark a turning point in the development of this technology.