New details emerge on Meta’s $14.3B deal for Scale | TechCrunch
Jun 13, 2025 - techcrunch.com
Meta has entered into a deal to acquire a 49% stake in the AI startup Scale, valuing the company at over $29 billion. This transaction is notable as it involves distributing proceeds to shareholders and vested equity holders, providing them with significant liquidity while allowing them to retain their shares. Alexandr Wang, Scale's co-founder and CEO, will join Meta as part of the agreement. Despite the appearance of a share buyout, sources indicate that investors are receiving dividends instead. Accel, an early backer of Scale, is reportedly set to receive a $2.5 billion payout.
The deal is unusual given Scale's previous valuation of $14 billion after a $1 billion Series F funding round a year prior. The substantial dividend payout is akin to purchasing the company, raising questions about regulatory approval. Scale, which provides AI training data verified by humans, has numerous investors, including Amazon and Meta. The outcome of this transaction will be closely watched to see if it passes regulatory scrutiny.
Key takeaways:
Meta is acquiring a 49% ownership stake in AI startup Scale, valuing the company at over $29 billion.
Scale will distribute proceeds to shareholders and vested equity holders, providing them with substantial liquidity while allowing them to remain shareholders.
Meta is hiring Scale's CEO Alexandr Wang, who founded the company after dropping out of MIT at age 19.
Investors, such as Accel, are receiving significant dividend payouts, with Accel reportedly getting $2.5 billion.
