Meta Eyes $10 Billion Bet on Scale AI to Bridge Its Cloud Gap

Meta Platforms is reportedly in advanced talks to invest more than $10 billion into Scale AI, according to sources cited by Bloomberg — a deal that would mark Meta’s largest-ever external investment in AI and a major strategic pivot.

The move suggests Meta may be acknowledging a critical limitation: unlike Microsoft, Amazon, or Google, it doesn’t operate its own commercial cloud. And in today’s AI race, no cloud means fewer choices.

Why Scale AI?

Founded in 2016 by Alexandr Wang, Scale AI specializes in data labeling and infrastructure that powers models from OpenAI, Microsoft, and other top players.
Scale was last valued at $14 billion, and a tender offer could push it to $25 billion.
Revenue soared to $870 million in 2024 and is expected to top $2 billion in 2025.
Meta and Microsoft have both backed Scale in earlier funding rounds.

What’s Behind Meta’s Move?

Historically, Meta built its AI in-house, relying on internal research labs and open-source tools like Llama. But the game has changed:

Microsoft has already poured $13B+ into OpenAI, gaining first access to GPT models and leveraging Azure’s dominance.
Amazon and Google are funding Anthropic and other startups while offering powerful compute via AWS and Google Cloud.
Meta lacks a public cloud business, limiting its ability to offer compute-heavy partnerships.

This makes Scale AI a strategic workaround — offering Meta instant credibility and infrastructure without needing to build its own cloud empire.

Military Ties & “Defence Llama”

The deal isn’t just about enterprise AI. Scale has growing ties to the US Department of Defense, working on classified AI agents and military-grade models.

Meta is already co-developing “Defence Llama”, a secure version of its Llama model tailored for defense use. It also recently partnered with Anduril Industries, a defense tech firm, to create AI-powered military gear, including a VR battlefield helmet.

Meta is now allowing its LLMs to be used by government contractors, signaling a broader pivot into the military-tech space.

Zuckerberg’s $65B AI Vision

Meta CEO Mark Zuckerberg has declared that AI is the company’s #1 priority, pledging up to $65 billion in AI investments in 2025. Llama is at the center of this push, already integrated into Facebook, Instagram, and WhatsApp, with over 1 billion users engaging with Meta AI monthly.

But if Meta wants to stay competitive in the enterprise and defense arms of AI, internal R&D alone may not be enough — hence the Scale deal.