Meta has invested $14.8 billion in data-labelling firm Scale AI, acquiring a 49% nonvoting stake in a deal that values the startup at $29 billion, according to a Reuters report.

As part of the agreement, Scale AI’s CEO and co-founder, Alexandr Wang, will step down to join Meta’s artificial intelligence initiatives. Wang, 28, founded the company in 2016 and quickly established it as a key partner in AI model training, working with tech giants including Microsoft and OpenAI.

The investment, Meta’s second-largest after acquiring WhatsApp in 2014, does not grant it board representation or control over Scale AI. However, competitors such as Google are reportedly distancing themselves from Scale, citing concerns about Meta’s influence.

The deal is structured to avoid immediate antitrust scrutiny, though regulators may still investigate potential competitive risks.

Wang’s move marks a shift in Meta’s AI strategy following delays in launching AI models and the departure of key researchers. By hiring a business-oriented leader rather than a research scientist, CEO Mark Zuckerberg appears to be steering Meta’s AI division in a new direction.

While the deal offers early investors in Scale AI a lucrative return, it has raised questions about the startup’s independence and its future role in the broader AI ecosystem.