FACTBOX-Meta's Scale AI stake buyout spotlights other major deals amid regulatory risks
June 12 (Reuters) - Meta has finalized a $14.3 billion purchase of a 49% stake in data labeling startup Scale AI, according to sources familiar with the matter.
Scale AI said late on Thursday that the deal would value it at $29 billion and that the startup's chief executive, Alexandr Wang, would join Meta to head a new team focused on artificial general intelligence, the latest twist in Silicon Valley's race toward the cutting-edge technology.
Founded in 2004 by CEO Mark Zuckerberg and his fellow Harvard University students and originally called "TheFacebook", the company dropped "The" from its name after securing the Facebook.com domain in 2005. It rebranded as Meta Platforms in 2021.
The Scale AI deal comes when Meta, which has a market value of $1.77 trillion, contends with antitrust scrutiny surrounding its acquisitions of WhatsApp and Instagram.
Here are Meta's major deals over the years:
Target | Deal Value | Announced | Closed | Scope |
$19 billion | February 2014 | October 2014 | Mobile messaging platform acquired in a cash and stock deal. | |
Scale AI | $14.3 billion (sources say) | June 2025 | Deal could help Meta have access to the high-quality data labeling that's increasingly gaining significance. | |
Oculus VR | $2 billion | March 2014 | Same year | Maker of virtual-reality glasses for gaming in fast-growing wearable devices space. |
$1 billion | April 2012 | Same year | Mobile photo- and video-sharing platform acquired in a cash and stock deal. | |
Kustomer | $1 billion (reported by The Information) | November 2020 | February 2022 | Customer relationship management platform, which raised $60 million in financing in 2023 amid spin-out from Meta. |
CTRL‑Labs | Between $500 million and $1 billion (reported by CNBC) | September 2019 | Same year | New York-based startup specializing in non-invasive neural interface technology. |
LiveRail | $400 million to $500 million (reported by TechCrunch) | July 2014 | Same year | San Francisco-based video and advertising company. |
Giphy | $400 million | May 2020 | Unable to close | Meta faced regulatory scrutiny from UK's Competition and Markets Authority. In May 2023, it decided to sell Giphy to Shutterstock for $53 million. |
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