Meta's $14.8 Billion Scale AI Investment Faces Regulatory Scrutiny Amid AI Strategy Shift

Meta Platforms (NASDAQ: META) is reportedly preparing to invest approximately $14.8 billion for a 49% stake in Scale AI, a leading provider of data-labeling services critical to AI model training. As part of the deal, Scale AI's CEO, Alexandr Wang, will join Meta to spearhead a new "superintelligence" lab alongside a 50-person research team personally led by Mark Zuckerberg. The move comes in the wake of underperforming Llama 4 and delays to the "Behemoth" flagship AI model, making this Meta's boldest strategic pivot in AI to date.

On the regulatory front, U.S. antitrust authorities—particularly the FTC and DOJ—are scrutinizing even minority investments under Clayton Act provisions, raising questions about whether Meta can sidestep past regulatory hurdles related to Instagram and WhatsApp. Proponents, however, note that Scale AI's projected revenue doubling to over $2 billion in 2025 and early investor gains may help justify the deal.

As of June 11, 2025, Meta stock (NASDAQ: META) is trading at $700.45, down $1.95 (–0.28%) on the day. Intraday trading has ranged between $697.72–$708.54, on volume of approximately 4.8 million shares. The investment represents a significant commitment to artificial intelligence infrastructure at a time when Meta faces increasing competition in the AI space and regulatory pressure regarding its market dominance.

The acquisition of a minority stake rather than a full takeover appears designed to address potential antitrust concerns, though regulators may still challenge the arrangement under existing competition laws. The involvement of Scale AI's leadership team, particularly CEO Alexandr Wang joining Meta directly, suggests deep integration between the companies despite the minority ownership structure.

This investment comes at a critical juncture for Meta's AI ambitions, following technical challenges with previous models and increasing pressure to compete with other tech giants in the artificial intelligence race. The data-labeling services provided by Scale AI are essential for training advanced AI systems, making this partnership strategically important for Meta's long-term position in the rapidly evolving AI landscape.