Meta is reportedly planning a $15 billion investment to acquire a 49% stake in Scale AI, valuing the startup at around $30 billion. This move is seen as a strategic effort to strengthen Meta's relationship with vital AI partners, but analysts suggest it may function primarily as an 'acquihire.' The focus appears to be on securing Scale AI's cofounder and CEO, Alexandr Wang, and his team, highlighting the increasing trend of acquiring startups for talent in the competitive AI landscape.
An acquihire is traditionally a deal in which a small startup with limited prospects sells itself to a bigger player, which is usually more interested in the company's employees than whatever it's supposed to be making.
Wang is the CEO of Scale AI, a data company that works with giant AI leaders like Meta and OpenAI. And Meta is reportedly about to spend $15 billion to buy a 49% stake in Scale AI.
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