Scale AI's Alexandr Wang confirms departure for Meta as part of $14.3 billion deal

In a significant move confirmed through a memo to employees, Alexandr Wang, the founder of Scale AI, announced his departure to join Meta. This announcement aligns with reports earlier in the week regarding a substantial investment from the social media giant, amounting to $14.3 billion. As part of the agreement, Meta will acquire a 49% stake in Scale AI, although it will not possess any voting rights, according to a spokesperson for Scale AI. Wang expressed his sentiments in the memo shared on X, stating, "As you've probably gathered from recent news, opportunities of this magnitude often come at a cost. In this instance, that cost is my departure. It has been the absolute greatest pleasure of my life to serve as your CEO." Following his exit, Jason Droege, who previously held the role of chief strategy officer, will step into the CEO position. Droege brings a wealth of experience, having worked as a venture partner at Benchmark and as a vice president at Uber. The agreement also includes the transfer of a small number of Scale AI employees to Meta. A Meta spokesperson confirmed the completion of this strategic partnership, emphasizing that the focus will be on enhancing collaborative efforts in producing data for AI models. Wang will play a pivotal role in Meta's superintelligence initiatives, with further details expected to be revealed in the coming weeks. This strategic move aligns with CEO Mark Zuckerberg's vision to strengthen Meta's AI capabilities amid increasing competition from tech giants like OpenAI and Alphabet, Google's parent company. Zuckerberg has identified AI as a top priority for 2025 but has faced challenges with internal teams, particularly following lukewarm reactions to the latest version of Meta's Llama AI models. Unlike his usual practice of promoting long-standing employees, Zuckerberg has opted for an external candidate in Wang to drive these crucial AI initiatives. Scale AI serves several competitors of Meta, including Google, Microsoft, and OpenAI, yet Meta remains one of its largest clients. A representative from Scale AI assured that the new investment and Wang’s appointment will not affect the startup's existing customer relationships, ensuring that Meta will not have access to any proprietary business information or data.