According to reports, Meta Platforms is in talks to make a multibillion-dollar investment into artificial intelligence startup Scale AI.

The financing could exceed $10 billion in value, some of the people said, making it one of the largest private company funding events of all time.

The details of the agreement have not been finalized and may still change, according to individuals who preferred to remain anonymous while discussing confidential information. Scale AI, whose clients include Microsoft Corp. and OpenAI, offers data labeling services that assist companies in training their machine-learning models and has emerged as a significant beneficiary of the generative AI surge.

In 2024, the startup was valued at approximately $14 billion during a funding round that featured support from Meta and Microsoft. This would represent Meta's largest external investment in AI to date and is an unusual step for the company.

Historically, the social media giant has mainly relied on its internal research and a more open development approach to enhance its AI technology. In contrast, its major tech competitors have significantly invested in AI; Microsoft has allocated over $13 billion to OpenAI while both Amazon.com Inc. and Alphabet Inc. have invested billions in competitor Anthropic. Some of these investments have taken the form of credits for using their computing resources.

Since Meta lacks a cloud service, the specific structure of its investment remains uncertain. CEO Mark Zuckerberg has prioritized AI, stating in January that the company plans to spend up to $65 billion on related initiatives this year. Scale and Meta have a mutual interest in defense technology.

Also Read: Say Hello to Champak, the Delightful Addition to IPL Experience

Recently, Meta revealed a new collaboration with defense contractor Anduril Industries Inc. to create products for the US military, such as an AI-enhanced helmet with virtual and augmented reality capabilities. Meta has also authorized US government agencies and defense contractors to utilize its AI models.